Agenda packet — Glendora City Council, June 23, 2026 (part 4 of 4)

Section IV, Payment, is hereby amended to add a subsection (5), as follows:

5. Limitation on CITY Contribution. CITY’s base financial contribution under this Agreement shall not exceed $9,906,068.00, except for costs arising from CITY-requested scope changes, betterments, utility requirements, utility relocation costs, delays attributable to CITY, third-party obligations assigned to CITY, funding commitments assumed by CITY, ineligible costs caused by CITY, or other costs expressly assigned to CITY under this Agreement. In the event Project costs exceed available funding, the Parties shall meet and confer regarding additional funding sources, scope modifications, or other mutually acceptable solutions. Nothing herein shall require SGVCOG to fund Project cost overruns from its unrestricted funds.

Docusign Envelope ID: C63AC70B-2A56-8D2B-82E3-7A59515241F4 FTIP #: LATPM17M027, LATPM17M027A, LATPM17M027B & LATPM17M027C Memorandum of Agreement – Amendment No. 1
4 01240.0006 2149523.3
Payments. CITY shall submit its full local funding contributions to the SGVCOG per the attached Exhibit “B”, and as further detailed in this Agreement. With respect to amendments to the SGVCOG’s existing consultant contracts, CITY shall submit its full local funding contribution, if any to the SGVCOG, no later than thirty (30) calendar days before SGVCOG recommends award of the amendment to the SGVCOG’s existing consultant task order(s).

Notwithstanding any other provision of this Agreement, SGVCOG shall have no obligation to advertise for construction bids, award a construction contract, execute a construction contract amendment, issue a Notice to Proceed, or authorize additional work unless and until all required CITY funding contributions have been received by SGVCOG.

Within thirty (30) calendar days of the effective date, CITY shall pay to SGVCOG Two Million Three Thousand Two Hundred Nineteen Dollars and 82/100 ($2,003,219.82), of which $608,752.49 will contribute towards Plans, Specifications, and Estimate (PS&E) and $1,394,467.33 will contribute towards the construction phase for the CITY’s project, as further detailed in the attached Exhibit “B”.

CITY shall also provide its local funding contributions towards the PROJECT and shall pay the SGVCOG the funding that has been allocated by the CITY per the programmed funding years, as shown in Exhibit “B.

SGVCOG shall have no obligation to award, issue Notice-to-Proceed with consultant amendments, or proceed with construction of the Project until CITY’s contribution is received.
d. Section IV, Payment, is hereby amended to add a subsection (6), as follows:

6. The Project is not fully funded for construction. The PARTIES acknowledge that the total estimated Project cost exceeds currently secured funding and that additional funding will be required before the construction phase may proceed.

SGVCOG shall have no obligation to advertise, award, issue notice to proceed, incur construction costs, or continue work unless sufficient funding has been secured and all applicable funding approvals, obligations, authorizations, and reimbursement eligibility requirements are in place.

Any loss, de-obligation, lapse, repayment, audit disallowance, reimbursement denial, or ineligible cost caused by CITY action, inaction, requested scope, delay, betterment, or failure to comply with Funding Source requirements shall be the responsibility of CITY.

3. Continuing Effect of Agreement. Except as amended by this Amendment No. 1, the provisions of the Amended and Restated Agreement shall remain unchanged and in full force and effect. From and after the date of this Amendment No. 1, whenever the term “Agreement” appears in the Amended and Restated Agreement, it shall mean the Amended and Restated Agreement, as amended by this Amendment No. 1 to the Amended and Restated Agreement.

Docusign Envelope ID: C63AC70B-2A56-8D2B-82E3-7A59515241F4 FTIP #: LATPM17M027, LATPM17M027A, LATPM17M027B & LATPM17M027C Memorandum of Agreement – Amendment No. 1
5 01240.0006 2149523.3

4. Affirmation of Agreement; Warranty Re Absence of Defaults. CITY and SGVCOG each ratify and reaffirm each and every one of the respective rights and obligations arising under the Agreement. Each PARTY represents and warrants to the other that there have been no written or oral modifications to the Agreement other than as provided herein. Each PARTY represents and warrants to the other that the Agreement is currently an effective, valid, and binding obligation.

SGVCOG represents and warrants to CITY that, as of the date of this Amendment No. 1, CITY is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement.

CITY represents and warrants to SGVCOG that, as of the date of this Amendment No. 1, SGVCOG is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement.

5. Adequate Consideration. The PARTIES hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 1.

6. Authority. The persons executing this Amendment No. 1 on behalf of the PARTIES hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment No. 1 on behalf of said party, (iii) by so executing this Amendment No. 1, such party is formally bound to the provisions of this Amendment No. 1, and (iv) the entering into this Amendment No. 1 does not violate any provision of any other agreement to which said party is bound.

7. Counterparts. This Amendment No. 1 may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument. Each of the parties intend to be bound by the signatures on any telecopied, .pdf or other electronically delivered document, and are aware that the other party will rely on the telecopied, .pdf or other electronically delivered signatures, and hereby waive any defenses to the enforcement of the terms of this Amendment No. 1 based on the form of signature. [SIGNATURE PAGE FOLLOWS]
Docusign Envelope ID: C63AC70B-2A56-8D2B-82E3-7A59515241F4 FTIP #: LATPM17M027, LATPM17M027A, LATPM17M027B & LATPM17M027C Memorandum of Agreement – Amendment No. 1
6 01240.0006 2149523.3
IN WITNESS WHEREOF, the PARTIES hereto have executed this Amendment No. 1 on the date and year first-above written.

CITY:

CITY OF GLENDORA, a California municipal
corporation
Adam Raymond
City Manager
APPROVED AS TO FORM: CERTIFY AVAILABILITY OF FUNDS:

ALESHIRE & WYNDER, LLP
Danny Aleshire
City Attorney
Kyle Johnson
Finance Director/City Treasurer
ATTEST:

Kathleen R. Sessman
City Clerk/Communications Director
SGVCOG:

SAN GABRIEL VALLEY COUNCIL OF

GOVERNMENTS
Name: Marisa Creter
Title: Executive Director
Email: [email protected]
APPROVED AS TO FORM:

WOODRUFF & SMART, APC
Cassie E. Trapesonian
General Counsel
Email: [email protected]
Docusign Envelope ID: C63AC70B-2A56-8D2B-82E3-7A59515241F4 Jun 12, 2026 | 10:59 AM PDT
Jun 12, 2026 | 12:08 PM PDT
FTIP #: LATPM17M027, LATPM17M027A, LATPM17M027B & LATPM17M027C Memorandum of Agreement – Amendment No. 1
1 01240.0006 2149523.3

EXHIBIT A

EAST SAN GABRIEL VALLEY

SUSTAINABLE MULTIMODAL IMPROVEMENT PROJECT (SMIP)
Scope of Work
City of Glendora SMIP Phase 1
City of Glendora
Glendora People Movement Project
Glendora SMIP Phase 1 Project Description
The City of Glendora’s SMIP Phase 1 Work shall consist of the following – The People Movement Project (i.e., the PROJECT) includes the strategic build out of approximately 3.8 miles of Active Transportation infrastructure. The People Movement Project is comprised of five total Projects including: 1) Glendora Avenue Project, 2) Foothill Boulevard Project, 3) Little Dalton Wash Project, 4) San Dimas Wash Project, and, funding permitted, 5) Big Dalton Wash, which together would deliver key First/Last Mile connectivity improvements to the Metro A Line and fully develop the Glendora Urban Trail System, and are described in detail below. The Urban Trails are Class I multi-use bicycle/pedestrian facilities (bikeways/bike paths) along flood control channels. First/Last Mile improvements include separated bike lanes, curb extensions, roundabout, and a protected intersection.

1. Glendora Avenue FLM Project
The Project includes the construction of 0.5-mile of raised Class IV protected bikeway and pedestrian improvements along Glendora Avenue from Glendora Avenue/Foothill Boulevard to Glendora Avenue/Route 66. Project elements also include a protected intersection at Foothill Boulevard/Glendora Avenue, biofiltration curb extensions and enhanced crosswalk at Carroll Avenue/Glendora Avenue, roundabout at Ada Avenue/Glendora Avenue, wayfinding signage, and funding permitted, green street features such as dry wells and tree well filters. In addition, the project will utilize antique street lights that are no longer in operation and currently in City storage. As part of this project, the City has completed restoration of 74 antique street lights and will contain them in storage until ready for installation along Glendora Avenue, between Ada Avenue and Foothill Boulevard. It will also be imperative that this project is coordinated with the separate Glendora Avenue Water and Street Improvement Project (from Gladstone Street to Route 66) as well as the Foothill Boulevard Project in order to mitigate any conflicts and reduce community impacts.

Preparation for Relocation of City Marquee and Traffic Signal Cabinet The City currently has a digital marquee located on Foothill Boulevard in front of the City Hall entrance. As part of a separate project, the City plans to relocate the marquee to the southeast corner (SEC) of Foothill Boulevard and Glendora Avenue; however, preparation work will be completed as part of this People Movement Project. In preparation for the relocation, conduit will be installed for the marquee's new location. Additionally, conduit will be installed to support the relocation of the traffic signal cabinet at the SEC of Foothill Boulevard and Glendora Avenue approximately 25 to 30 meters south along Glendora Avenue.

CITY shall pay One Hundred Percent (100%) of the Project engineering, construction, and administration and project management costs for these CITY requested betterments and a separate agreement shall be executed defining the terms and conditions under which the betterment is to be engineered, constructed, financed, operated, and maintained.

Failure of the Parties to execute a separate betterment agreement shall not delay, suspend, interfere with, or otherwise affect the design, procurement, award, construction, or completion of the base Project. In the absence of an executed betterment agreement, SGVCOG may remove the proposed betterment from the Project scope without liability to CITY.

2. Little Dalton Wash Project
The Project includes the construction of 1.7 miles of Class I bicycle and pedestrian facilities to provide an eight-to-80 facility between the Colby Trail and Finkbiner Park along the Little Dalton Wash from the southern terminus of the Colby Trail located at the end of the cul-desac on N. Loraine Avenue/Saga Street to Finkbiner Park located at 160 N. Wabash Avenue (one block north of Foothill Boulevard between Wabash Avenue and Cullen Avenue). This Project also includes street intersection crossing improvements, on-street Class III bike route due to right-of-way constraints, native landscaping, park amenities such as benches, water fountains, and monument signs.

3. San Dimas Wash Project
The Project includes the construction of 1.6 miles of Class I bicycle and pedestrian facilities along the San Dimas Wash from Sunflower Avenue/Gladstone Street to Grand Avenue/Arrow Highway. This Project’s components include four (4) street crossing/intersection improvement upgrades including three midblock crossings, one pedestrian scramble, native landscaping, and park amenities such as benches, water fountains, workout equipment, and trail monument signs.

4. Foothill Boulevard FLM Project
The Project includes the construction of 1.48 miles of Class IV protected bikeway and pedestrian improvements along Foothill Boulevard from Citrus Avenue to Minnesota Avenue.

Docusign Envelope ID: C63AC70B-2A56-8D2B-82E3-7A59515241F4 FTIP #: LATPM17M027, LATPM17M027A, LATPM17M027B & LATPM17M027C Memorandum of Agreement – Amendment No. 1
3 01240.0006 2149523.3
Elements include four (4) traffic signal modifications, 16 ADA curb ramps, curb extensions, and enhanced sidewalks. If all antique street lights are not utilized with the Glendora Avenue Project, remaining refurbished lights, pending available funding, will be included for installation along Foothill Boulevard. Coordination with the Glendora Avenue segment will be imperative to mitigate any conflicts and reduce community impacts.

5. Big Dalton Wash Project
The Project includes the construction of approximately 4.5 miles of Class I and Class II/IV bicycle facilities and pedestrian improvements along the Big Dalton Wash corridor from Dalton Canyon to Barranca Avenue. The design will prioritize seamless connectivity, safety, and clear directional signage to guide users along the entire route. Special attention will be given to the segment between Foothill Boulevard and Route 66, where the trail will temporarily diverge from the Wash to bypass the City’s Corporate Yard. In this section, the trail will reroute west to Loraine Avenue, proceed south to Route 66, and then reconnect with the Wash, ensuring a continuous and user-friendly experience.

Glendora SMIP Phase 1 Work Project Limits/Area & Location Map Docusign Envelope ID: C63AC70B-2A56-8D2B-82E3-7A59515241F4 FTIP #: LATPM17M027, LATPM17M027A, LATPM17M027B & LATPM17M027C Memorandum of Agreement – Amendment No. 1
4 01240.0006 2149523.3

1. Glendora Avenue Project
The project is located along Glendora Avenue in the City of Glendora. The project limits are Glendora Avenue/Foothill Boulevard to the north and Glendora Avenue/Route 66 to the south.

2. Little Dalton Wash Project
The project is located between the Colby Trail and Finkbiner Park along the Little Dalton Wash in the City of Glendora. The project limits are from the southern terminus of the Colby Trail located at the end of the cul-de-sac on N. Loraine Avenue/Saga Street to Finkbiner Park located at 160 N. Wabash Avenue (one block north of Foothill Boulevard between Wabash Avenue and Cullen Avenue).

3. San Dimas Wash Project
The project is located along the San Dimas Wash in the City of Glendora. The project limits are from Sunflower Avenue/Gladstone Street to Grand Avenue/Arrow Highway.

4. Foothill Boulevard FLM Project
The project is located along Foothill Boulevard from Citrus Ave to Minnesota Avenue.

5. Big Dalton Wash Project
The project is located along the Big Dalton Wash from Dalton Canyon Road to Barranca Avenue.

Glendora SMIP Phase 1 Work - Estimated Project Costs & Project Funding/Budget The total estimated cost for the City’s SMIP Phase 1 Project is $36,628,168. Currently, secured funding totals $21,716,068, consisting of: $4,975,000 in Measure M Multi-Year Subregional Program (MSP) Cycle 2 and $4,960,000 in MSP Cycle 3 First/Last Mile (FLM) subfunds, $1,625,000 in ATP Cycle 6 funds, and $250,000 in FY26 Congressionally Directed Spending (CDS) earmark funds, which comprises $11,810,000 in secured funds administered by SGVCOG; and $9,906,068 in local funding contributions by the City which includes funding from FY23 CDS and FY24 CDS earmark funds as detailed in Exhibit B. The PARTIES acknowledge that the Project is not fully funded for construction and that additional funding will be required before construction may be advertised, awarded, or commenced. Final construction costs will be confirmed upon completion of PS&E. SGVCOG shall have no obligation to proceed with construction unless sufficient funding is secured and all applicable Funding Source requirements are satisfied. Details for the secured funding for the Project are shown in Exhibit B.

Docusign Envelope ID: C63AC70B-2A56-8D2B-82E3-7A59515241F4 FTIP #: LATPM17M027, LATPM17M027A, LATPM17M027B & LATPM17M027C Memorandum of Agreement – Amendment No. 1
5 01240.0006 2149523.3
Glendora SMIP Phase 1 Detailed Project Schedule

1. Glendora Avenue Project
Project Status: The Project is currently progressing from 60% to 90% design.

Project Schedule: Construction to start in winter of FY26/27.

Glendora Avenue FLM SMIP Phase 1 Project Milestone Schedule Project Milestones /
Phases Start Date End Date
Duration
(Months)
PA&ED November 1, 2025 June 1, 2026 7
PS&E April 8, 2024 June 30, 2026 26
ROW n/a n/a
CON December 1, 2026 October 1, 2027 10
CLOSEOUT January 1, 2028 May 1, 2028 4

2. Little Dalton Wash Project
Project Status: The Project is currently in 30% preliminary engineering phase.

Project Schedule: Construction estimated to start in FY28/29.

Little Dalton Wash SMIP Phase 1 Project Milestone Schedule Project Milestones /
Phases Start Date End Date
Duration
(Months)
PA&ED January 1, 2027 July 31, 2027 7
PS&E April 8, 2024 March 1, 2028 47
ROW May 1, 2027 December 1, 2027 8
*CON August 1, 2028 July 1, 2029 11
CLOSEOUT October 1, 2029 February 1, 2030 4
*Projected start date for construction based on date for programmed funds for MSP Cycle 3 funds.

Docusign Envelope ID: C63AC70B-2A56-8D2B-82E3-7A59515241F4 FTIP #: LATPM17M027, LATPM17M027A, LATPM17M027B & LATPM17M027C Memorandum of Agreement – Amendment No. 1
6 01240.0006 2149523.3

3. San Dimas Wash Project
Project Status: SGVCOG has executed a contract with the contractor for construction.

Project Schedule: Construction to begin by June 2026.

San Dimas Wash SMIP Phase 1 Project Milestone Schedule
Project Milestones /
Phases Start Date End Date
Duration
(Months)
PA&ED December 1, 2018 March 18, 2019 3½
PS&E March 22, 2022 September 30,
2023
18 ROW June 1, 2023 September 30,
2023
4 CON June 1, 2026 April 30, 2027 11
CLOSEOUT July 1, 2027 November 1, 2027 4

4. Foothill Boulevard FLM
Project Status: The Project is currently progressing from 60% to 90% design.

Project Schedule: Construction to start in winter of FY26/27.

Foothill Boulevard FLM SMIP Phase 1 Project Milestone Schedule Project Milestones /
Phases Start Date End Date
Duration
(Months)
PA&ED November 1, 2025 June 1, 2026 7
PS&E December 2, 2024 June 30, 2026 18
ROW n/a n/a
CON December 1, 2026 October 1, 2027 10
CLOSEOUT January 1, 2028 May 1, 2028 4
Docusign Envelope ID: C63AC70B-2A56-8D2B-82E3-7A59515241F4 FTIP #: LATPM17M027, LATPM17M027A, LATPM17M027B & LATPM17M027C Memorandum of Agreement – Amendment No. 1
7 01240.0006 2149523.3

5. Big Dalton Wash Project
Project Status: Design has not yet been initiated due to insufficient funding.

Project Schedule: Construction schedule to be determined, subject to funding availability.

Big Dalton Wash SMIP Phase 1 Project Milestone Schedule Project Milestones /
Phases Start Date End Date
Duration
(Months)

PA&ED TBD TBD TBD

PS&E TBD TBD TBD

ROW TBD TBD TBD

CON TBD TBD TBD

CLOSEOUT TBD TBD TBD
Docusign Envelope ID: C63AC70B-2A56-8D2B-82E3-7A59515241F4 LATPM17M027, LATPM17M027A, LATPM17M027B & LATPM17M027C
Memorandum of Agreement – Amendment No. 1
1 01240.0006 2149523.3

EXHIBIT B

CITY OF GLENDORA

EAST SAN GABRIEL VALLEY SUSTAINABLE MULTIMODAL IMPROVEMENT PROJECT (SMIP) Phase 1 Project Funding Allocation
Project Name Source of Funds Phase
Responsible
Funding
Party Amount
Funding
Programming
Glendora People Movement Project – San Dimas Wash
City CIP Construction Glendora $200,000 FY25/26
Measure R Local
Return Construction Glendora $194,467 FY25/26
Recreational Trails
Program Construction Glendora $1,000,000 FY25/26
Measure M MSP Cycle
2 (FLM Subfund) Construction SGVCOG $2,241,122 FY25/26 & FY26/27 ATP Cycle 6 Construction SGVCOG $1,525,000 FY25/26
Subtotal City Contribution $1,394,467
Subtotal SGVCOG Contribution $3,766,122
TOTAL SECURED FUNDING $5,160,590
Docusign Envelope ID: C63AC70B-2A56-8D2B-82E3-7A59515241F4 FTIP #: LATPM17M027, LATPM17M027A, LATPM17M027B & LATPM17M027C Memorandum of Agreement – Amendment No. 1
2 01240.0006 2149523.3
Project Name Source of Funds Phase
Responsible
Funding
Party Amount
Funding
Programming
Glendora People Movement Project – Glendora Avenue
FLM
Measure R Local
Return Construction Glendora $133,318 FY26/27
Prop C Local Return Construction Glendora $93,935 FY26/27 TDA Article III Construction Glendora $20,000 FY26/27
State Budget Allocation
Construction
(Antique
Streetlights)
Glendora $1,500,000 FY26/27
FY23 Federal Earmark Construction Glendora $4,655,549 FY26/27 Measure M MSP Cycle
2 (FLM Subfund) PS&E SGVCOG $647,329 FY22/23 to FY25/26 FY26 Federal Earmark Construction SGVCOG $250,000 FY26/27 Subtotal City Contribution $6,402,802
Subtotal SGVCOG Contribution $897,329
TOTAL SECURED FUNDING $7,300,131
Docusign Envelope ID: C63AC70B-2A56-8D2B-82E3-7A59515241F4 FTIP #: LATPM17M027, LATPM17M027A, LATPM17M027B & LATPM17M027C Memorandum of Agreement – Amendment No. 1
3 01240.0006 2149523.3
Project Name Source of Funds Phase
Responsible
Funding
Party Amount
Funding
Programming
Glendora People Movement Project – Little Dalton Wash Measure M Local Return PS&E Glendora $43,782 FY25/26
Prop C Local Return PS&E Glendora $10,060 FY25/26
Measure M MSP Cycle
2 (FLM Subfund) PS&E SGVCOG $769,279 FY22/23 toFY25/26
Measure M MSP Cycle
3 (FLM Subfund)
ROW &
Construction SGVCOG $4,715,975 FY28/29
ATP Cycle 6 PS&E SGVCOG $100,000 FY24/25
Subtotal City Contribution $53,842
Subtotal SGVCOG Contribution $5,585,253
TOTAL SECURED FUNDING $5,639,095
Project Name Source of Funds Phase
Responsible
Funding
Party Amount
Funding
Programming
Glendora People Movement Project – Foothill Boulevard
FLM City CIP PS&E Glendora $554,910.49 FY24/25 &
FY25/26
City CIP Construction Glendora $305,595.51 FY26/27
FY23 Federal Earmark Construction Glendora $344,451 FY26/27 Measure M MSP Cycle
2 (FLM Subfund) Construction SGVCOG $1,317,271 FY26/27
Subtotal City Contribution $1,204,957
Subtotal SGVCOG Contribution $1,317,271
TOTAL SECURED FUNDING $2,522,227
Docusign Envelope ID: C63AC70B-2A56-8D2B-82E3-7A59515241F4 FTIP #: LATPM17M027, LATPM17M027A, LATPM17M027B & LATPM17M027C Memorandum of Agreement – Amendment No. 1
4 01240.0006 2149523.3
Project Name Source of Funds Phase
Responsible
Funding
Party Amount
Funding
Programming
Glendora People Movement Project – Big Dalton Wash Measure M MSP Cycle 3 (FLM Subfund) Design SGVCOG $244,025 FY28/29
FY24 Federal Earmark Construction Glendora $850,000 FY28/29 Subtotal City Contribution $850,000
Subtotal SGVCOG Contribution $244,025
TOTAL SECURED FUNDING $1,094,025
Docusign Envelope ID: C63AC70B-2A56-8D2B-82E3-7A59515241F4 FTIP #: LATPM17M027, LATPM17M027A, LATPM17M027B & LATPM17M027C Memorandum of Agreement – Amendment No. 1
1 01240.0006 2149523.3

EXHIBIT C
CONSULTANT TASK ORDER AMENDMENT NO. 1

ADDITIONAL SCOPE OF SERVICES
The additional scope of work includes finalizing Little Dalton Wash and Glendora Avenue First/Last Mile Projects to completion with the extended schedule, additional submittals and coordination with US Army Corps of Engineers (USACE), photosimulations, and updates to the street lighting. Unless otherwise specified, this amended scope should be regarded as an extension of the current scope and fee and not as a replacement for any agreed-upon activity.

TASK 2 – Field Survey and Data Collection
Upon final design review, Alta identified several locations that extended beyond our initially surveyed project area such as Walnut Avenue, Sierra Madre Avenue, etc. These extents were due to a flux in the exact location of the new bike and pedestrian crossings upon completion of final design. The additional scope would involve two (2) days of additional ground topographic survey, data processing and incorporation into Alta’s existing base files.

TASK 3 – PS&E (Plans, Specifications, and Estimates) for Glendora Ave First/Last Mile and Little Dalton Trail
Little Dalton Wash Time Extension: The extension of project timeline precluded Altafrom submitting all segments in one package. In our baseline schedule submitted in the beginning of the task order, we had assumed design phase completion by February 2025. In December of 2024, the City had notified the project team of the need to pause work to receive additional input from the community. A second outreach event was conducted in April 2025. The City had provided the project team with a notice to proceed for Little Dalton Wash in July 2025. Our current completion date for design phase is March 2026. This 13-month extension had and will require additional project management time, coordination time with all Agencies and stakeholders including City of Glendora, SGVCOG, USAOC, and Foothill Transit, additional review, and design time. Previous scope had assumed that Little Dalton Wash would be completed simultaneously with Glendora Ave and Foothill Blvd segments.

Little Dalton Wash and Glendora Ave 60 Pct Submittal: The initial scope included 30, 90 and 100 pct submittals. Due to the lack of comments on the intricate areas such as the partially protected intersections, roundabouts and typical sections, the project had added a 60 pct submittal to receive feedback and establish the 2D linework required for detailed design. The additional submittal added an additional review by the City and internal team.

Docusign Envelope ID: C63AC70B-2A56-8D2B-82E3-7A59515241F4 FTIP #: LATPM17M027, LATPM17M027A, LATPM17M027B & LATPM17M027C Memorandum of Agreement – Amendment No. 1
2 01240.0006 2149523.3
Little Dalton Wash Finkbiner Park: Alta will collaborate with an adjacent project where the City is installing storm drain improvements within the area of the Little Dalton Wash trail on the west end of the project. Alta will share base files, establish time in points, provide comments to the project team for Finkbiner project to make sure the projects tie in together.

Glendora Avenue Value Engineering: Because of budgetary constraints on the project, Alta had applied value engineering to reassess the facilities and redesign as a separate Class-IV in lieu of a raised Class-IV. Changes included redesigning curb and gutter, sidewalk, driveways extensions, and landscaping. A visual ADA assessment was conducted to implement sidewalk, curb and gutter repairs, and driveway repairs only where accessibility was a concern. This change at 60 pct design required Alta to reconfigure our cross sections, layouts, and detail sheets as well as update our cost estimates. In addition to the value engineering, our team had combined the Foothill Boulevard and Glendora Avenue project sets and utilizing a larger quantity for the project that led to reduced unit prices with larger quantities. The net benefit of these efforts was a reduction in costs of $2.3M in construction costs.

Glendora Avenue Additional Design Features: Within final design, additional design is required to incorporate several features on the projects not initially scoped. These features include incorporation of Foothill Boulevard segment into Glendora Avenue, coordination with Foothill Transit, coordination with City staff and project to relocate SCE cabinet, coordination with City of Azusa on plans, specifications, and estimate deliverables. In addition, the project team added a curb extension on Vista Bonita as a terminus to project limits for proposed Class-IV bike facility.

Glendora Ave Coordination with Foothill Transit and City of Azusa: In our coordination efforts with the stakeholders, Alta was asked to meet with FTC who provides transit services along Glendora and Foothill Blvd. We had confirmed the new site conditions, FTC reviewed the site plans, and we had implemented several of their comments on our plans such as adjusting the location of the crosswalks, curb extension geometry, and location of signage. Due to the proximity of the Foothill project to City of Azusa, the team was asked to coordinate with City of Azusa to include their traffic control requirements, city working hours, and grading permit requirements into the project.

Glendora Ave City Marquee Monument and Traffic Signal Cabinet Relocation Project: In addition to the current project footprint, the City had informed Alta about a Public Works building marquee relocation project. This project would relocate the existing monument into the location of the traffic signal cabinet on Glendora Ave and Foothill Blvd.

The signal cabinet would then have to be relocated south of the intersection. The City had requested Alta to incorporate the monument relocation and coordinate on previous efforts completed for signal cabinet relocation. Alta had adjusted our Traffic Signal Modification plans to represent the proposed cabinet new location, adjusted pullbox connections, and traffic signal loops. Alta anticipates base file coordination to implement this design into our Traffic Signal plans, five (5) additional coordination calls with SoCal Edison (SCE), City and GTS, and updating our PS&E package with this additional work. We also anticipate two (2) additional landscape design sheets to develop for the new marquee Docusign Envelope ID: C63AC70B-2A56-8D2B-82E3-7A59515241F4 FTIP #: LATPM17M027, LATPM17M027A, LATPM17M027B & LATPM17M027C Memorandum of Agreement – Amendment No. 1
3 01240.0006 2149523.3
monument.

Glendora Ave Intersection Street Light Updates: The project team performed a photometric analysis for pedestrian level lighting along Glendora Avenue corridor from Route 66 to Foothill Boulevard. Due to the increase in lighting standards, especially near intersections and roundabouts, Alta had identified a need to update intersection street lighting to bring the lighting up to standard. Alta will conclude the photometric analysis with street lighting included in which we will add 10 additional streetlights adjacent to the intersection. The team will update up to three (3) street lighting sheets and our estimate.

Alta will coordinate with SCE as part of the lighting updates and submit an electrical service request with the assumption for one (1) round of SCE review comments. The team is aware of the SCE CAD requirements to submit our files for their review.

TASK 7 – Outreach
Little Dalton Wash Photosimulations: To support project website updates and future community engagement events as additional scope to Task 7 Outreach, Alta will provide up to three (3) photosimulations renderings that show 3-D cross sections in several key areas such as trail entrance near private driveways and area on the north end of the project where the path is in between the creek and private properties. The project team will provide preferred locations/photos selected for the renderings to SGVCOG and the City to confirm. The photosimulations will show how the mixed-use path will fit along the channel between the private properties, show privacy and amenities features on the path, and display path and trail users such as bicyclists and pedestrians.

PROPOSED ADDITIONAL FEE
Alta proposes to provide these additional services for a not-to-exceed fee of $161,101.00.

These fees are in accordance with the fee schedule on the attached sheet.

CONSULTANT COST PROPOSAL

PIC PM PE QA/QC
Project
Accountant Engineer III Engineer III Engineer I
Associate
Lancscape
Designer I
Landscape
Designer II
Task Phase Names
Vincent
Hellens
Aleksandra
(Sasha)
Fox Kevin Kim
Adrian
Esteban
Jorge Mil
Arias
Talia
Agazaryan
Daniela
Vazquez Susana Zerbe
Kathleen
McKernin Joel Ramirez
2026 Hourly Rate*
1 Task 1 - Environmental Analysis and Approval 0 0 0 0 0 0 0 0 0 0 0 $0.00 $0.00 0 $0 2 Task 2 - Field Survey and Data Collection 0 2 0 0 0 8 16 0 0 0 26 $5,390.00 $11,026.00 26 $16,416

2.01 Supplemental Survey LDW 0 1 0 0 0 4 8 0 0 0 13 $2,695.00 $3,308.00 13 $6,003

2.02 Supplemental Survey Glendora Ave 0 1 0 0 0 4 8 0 0 0 13 $2,695.00 $7,718.00 13 $10,413 3 Task 3 - Plans, Specifications and Estimate 0 14 17 18 0 67 70 362 12 24 584 $101,140.00 $0.00 584 $101,140

3.01 Glendora Ave 60% and 100% Plans 0 10 11 12 0 36 40 180 5 11 305 $54,313.00 $0.00 305 $54,313

3.02 Little Dalton Wash 60% and 100% Plans 0 4 6 6 0 31 30 182 7 13 279 $46,827.00 $0.00 279 $46,827 Task 4 - Agency Coordination and Approvals 0 0 0 0 0 0 0 0 0 0 0 $0.00 $0.00 105 $0 Task 5 - Right-of-Way Support Services 0 0 0 0 0 0 0 0 0 0 0 $0.00 $0.00 63 $0 6 Task 6 - Cost Estimate 0 0 6 2 0 26 0 0 2 6 42 $8,650.00 $0.00 42 $8,650

6.01 Glendora Ave 60% and 100% Cost Estimate 0 0 3 1 0 13 0 0 1 3 21 $4,325.00 $0.00 21 $4,325

6.02 Little Dalton Wash 60% and 100% Cost Estimate 0 0 3 1 0 13 0 0 1 3 21 $4,325.00 $0.00 21 $4,325 7 Task 7 - Outreach 0 3 0 0 0 8 0 40 0 0 51 $8,500.00 $0.00 134 $8,500

7.01 Photosimulations (up to 3 images) 0 3 0 0 0 8 0 40 0 0 51 $8,500.00 8 Task 8 - Construction Support 0 0 0 0 0 0 0 0 0 0 0 $0.00 $0.00 67 $0 9 Task 9 - Project Management 20 53 0 0 36 6 0 0 0 0 115 $27,395.00 $0.00 67 $27,395 Meetings (12 PDT Meetings, 4 Meetings with USACE, 6 meetings with LA

9.01 County Flood, 4 Meetings with Caltrans/ Other Stakeholders, 5 Meetings with SoCal Edison/GTS)
20 41 0 0 0 6 0 0 0 0 67 $19,895.00 $0.00 67 $19,895

9.02 Project Schedule ( 12 months) 0 12 0 0 0 0 0 0 0 0 12 $3,540.00 $0.00 12 $3,540

9.03 General Project Management - Coordination and Monthly Progress Reports, Invoicing (12 months)
0 0 0 0 36 0 0 0 0 0 36 $3,960.00 $0.00 36 $3,960
Staff Hours 20 72 23 20 36 115 86 402 14 30 818 1088
Labor Total $6,600 $21,373 $6,275 $5,753 $3,960 $22,960 $17,140 $60,225 $2,590 $4,200 $151,076.00 $11,026.00 $162,101.00 Project Total $6,600 $21,373 $6,275 $5,753 $3,960 $22,960 $17,140 $60,225 $2,590 $4,200 $151,076.00 $162,101.00 Amendment No. 1 Project Budget
Glendora People Movement Project - Task #01 Glendora Avenue & Little Dalton Wash Amendment #01 Project Fee Type: Percent Complete/Lump Sum
* Hours and staff assignments can be adjusted by the consultant as needed to implement the tasks described during the course of the project. * Hourly rates will be adjusted if work is continued into subsequent year(s).

Alta
Expenses
Total Task
Hours
Alta's Total Task Fee
Hours
Alta's Sub Total
* This fee proposal is valid for 90 days from the date submitted.

GENERAL NOTES:

Alta Planning + Design, Inc.

Coast
Surveing
Docusign Envelope ID: C63AC70B-2A56-8D2B-82E3-7A59515241F4 4861-9828-1463, v. 1

AMENDED AND RESTATED MEMORANDUM OF AGREEMENT FOR THE

GLENDORA PEOPLE MOVEMENT PROJECT
THIS AGREEMENT is made as of the date of February 13, 2025, by and between the CITY OF GLENDORA, a municipal corporation, hereinafter referred to as “CITY,” and the SAN GABRIEL VALLEY COUNCIL OF GOVERNMENTS, a California Joint Powers Authority, hereinafter referred to as “SGVCOG” (the “Agreement”), with the CITY and SGVCOG each individually referred to herein as “PARTY” and collectively as “PARTIES”.

RECITALS
WHEREAS, the PARTIES contemplate constructing a series of projects (individually referred to herein as a “Project”, and collectively, as the “Projects”) in the CITY as described in Exhibit “A,” which is attached hereto and incorporated herein by reference (collectively, referred to herein as the “People Movement Project”); and
WHEREAS, the PARTIES entered into a Memorandum of Agreement dated October 26, 2023 (the “Original Agreement”) in which the PARTIES agreed, among other things, to have SGVCOG administer and contract for the design, construction, and funding of specified projects within the CITY.

WHEREAS, CITY and the SGVCOG have allocated various funding sources for the People Movement Project as shown in Exhibit “B,” which is attached hereto and incorporated herein by reference (collectively the “Funding Sources”) to pay for completion of the People Movement Project, including but not limited to design, environmental documentation, right-ofway acquisition and construction.

WHEREAS, the CITY has requested that the SGVCOG oversee completion of the People Movement Project, including environmental analysis, design, and construction and the SGVCOG has agreed to do so under the terms and conditions of this Agreement.

WHEREAS, the PARTIES desire to enter into this Agreement to set forth the PARTIES funding obligations to (1) pay for the completion of final plans, specifications, and estimate (“PS&E”), (2) to prepare any and all documentation required under the National Environmental Protection Act (“NEPA”) and the California Environmental Quality Act (“CEQA”), and (3) to specify the terms and conditions under which the People Movement Project is to be engineered, constructed, financed, and owned.

WHEREAS, by entering into this Agreement the PARTIES intend to replace in its entirety the Original Agreement.

SECTION I-RECITALS/TERM

1. Recitals. The above Recitals are incorporated herein as a material part of this Agreement.

Docusign Envelope ID: A661F3D2-2788-493D-9EBA-59C8B8DC788A MOA – SGVCOG (People Movement Project) – 02.13.2025 2

2. Term. This Agreement shall become effective upon execution thereof by both PARTIES (the “Effective Date”) and shall continue, provided there is sufficient funding therefore, until the People Movement Project is completed (the “Term”), unless earlier terminated as provided herein. Upon the Effective Date this Agreement shall replace in its entirety the Original Agreement.

SECTION II-SGVCOG RESPONSIBILITIES
The SGVCOG Agrees:

1. SGVCOG Representative. To designate a representative (“SGVCOG Representative”) and contact information therefore, in writing to attend all People Movement Project-related meetings, including, but not limited to, meetings with consultants, contractors, stakeholders, public engagement/outreach, field meetings, and status update sessions. The SGVCOG Representative shall interact with the CITY Representative and be the CITY’s primary contact with respect to this Agreement and shall be primarily responsible for ensuring that the SGVCOG abides by the terms hereof.

2. Project Priority. Consult with the CITY on the priority and sequencing of the Projects that constitute the People Movement Project.

3. Prepare and Complete PS&E Documents. Through its own forces and by way of contracted services, prepare and complete all necessary preliminary engineering and PS&E documentation.

4. Public Engagement / Outreach. As the lead, be responsible for coordinating all aspects of public engagement and outreach. This includes organizing, scheduling, and preparing all necessary media and materials to effectively communicate project updates and gather public input.

5. NEPA and CEQA Documents. As the CEQA lead agency, to complete preparation of the People Movement Project approvals and environmental documentation required under CEQA and when applicable, NEPA (“PA&ED documentation”), and to deliver said PA&ED documentation to the CITY, as a CEQA responsible agency, for its review, comment, and consideration at each of the relevant stages of the preparation of the PA&ED documents except as provided in Section III below.

6. Obtain Governmental Approvals. To obtain all required authorizations and permits from governmental agencies necessary to construct the People Movement Project.

7. Acquire ROW. To acquire, with CITY’s cooperation and participation as set forth in Section III below, the necessary permanent or temporary property rights, if any, required outside of existing CITY property by way of eminent domain or otherwise.

8. Mitigate Impacts. To mitigate identified property owner and business impacts directly associated with the People Movement Project in accordance with applicable laws.

Docusign Envelope ID: A661F3D2-2788-493D-9EBA-59C8B8DC788A MOA – SGVCOG (People Movement Project) – 02.13.2025 3

9. Prepare Bid Documents. To prepare and finalize all bid documents for the CITY's review and written approval thereof prior to SGVCOG advertising a Project for construction bids.

10. Solicit Bids. Upon CITY’s written approval of the bid documents, solicit bids for each Project. SGVCOG shall use its standard request for bids and construction services agreement forms, including any minor negotiated deviations approved by the SGVCOG’s Executive Director and General Counsel. Upon the opening of bids and written concurrence of the CITY’s City Manager, SGVCOG staff will recommend that the SGVCOG’s Capital Project and Construction Committee (“CPCC”) award a construction contract for a Project to the lowest responsible bidder. Should the bids, in the reasonable discretion of either PARTY, exceed the available Project funding and no additional funding is available, the PARTIES shall meet and determine whether to de-scope the Project, recommend that the CPCC reject all bids and not award a construction contract, or some alternative course of action which will allow all the Project to stay within the available funding.

11. Betterments. To cooperate with the CITY with respect to inclusion of Project betterments that are requested by the CITY as is further detailed in Section III below.

12. Use of Funding Sources. To allocate the SGVCOG Funding Sources and utilize the CITY Funding Sources to complete the People Movement Project in accordance with this Agreement and any reporting or expenditure guidelines applicable to the Funding Sources.

13. Cost Controls. SGVCOG shall make all reasonable efforts to ensure People Movement Project-related expenses (including expenses related to CITY Betterments) stay within applicable budgets. SGVCOG shall award and approve all contracts, contract amendments, and change orders within the approved budget, including any contingency amounts, pursuant to the SGVCOG’s purchasing and procurement guidelines and policies and this Agreement. The SGVCOG Representative will be responsible for keeping the CITY Representative informed of substantive contract amendments and change orders and for assisting in the tracking and management of the available budget throughout the duration of the People Movement Project.

14. Review Project RFIs and Submittals. SGVCOG shall review and respond to all Requests for Information (“RFI”) submitted during the bidding and construction phases. If an RFI requires a response from the CITY, the CITY shall provide a written response within seven (7) calendar days. Additionally, SGVCOG shall review and approve all Project-related submittals, except those pertaining to CITY requested betterments as identified in the approved plans and specifications, which shall be reviewed separately by the CITY within seven (7) days.

15. Contractors’ Insurance. To require appropriate types and limits of insurance coverage and indemnification from all contractors and consultants. All policies of insurance shall name the SGVCOG, its member agencies, and their respective directors, officers, agents, employees, attorneys, consultants, and volunteers as additional insureds (the “Additional Insureds”) or the SGVCOG shall require endorsements identifying these parties as Docusign Envelope ID: A661F3D2-2788-493D-9EBA-59C8B8DC788A MOA – SGVCOG (People Movement Project) – 02.13.2025 4
additional insureds using a form acceptable to SGVCOG. All contracts shall require the insurer(s) to waive all rights of subrogation against the Additional Insureds and require to the extent allowed by allow that contractors defend, indemnify, and hold harmless the Additional Insureds against all claims relating to a contractor’s performance of services thereunder save and except those claims arising out of the sole negligence or willful misconduct of the Additional Insureds. The construction contract will require the successful bidder to ensure that its subcontractors, if any, provide similar insurance coverage, excepting that subcontractor limits may be lower than those required of the successful bidder based on the work being performed.

16. Oversee Construction. By way of its own forces and by way of contracted services, take all reasonable steps to oversee the timely completion of each Project in accordance with the approved plans and specifications, including managing consultants, the prime contractor(s), disputes with contractors and subcontractors, stop notices, claims, etc., which may arise during construction.

17. Changes within Right of Way. If proposed changes to the approved plans and specifications will impact the proposed Project improvements within CITY property rights, the SGVCOG will obtain the CITY's approval before authorizing said changes, which approval shall not be unreasonably withheld.

18. Inspections During Construction: To conduct daily construction inspections and oversee the coordination of all field activities, including but not limited to traffic control, utility relocation, and any other necessary operations. SGVCOG shall ensure that all field activities are carried out in compliance with applicable regulations, Project specifications, and safety standards.

19. Additional Funding Sources. In the event there is insufficient funding, to cooperate with the CITY in any efforts the CITY may desire to take to secure additional funding to complete the People Movement Project.

20. Updates. Upon request of CITY, the SGVCOG Representative or designee shall attend CITY Council meetings or other meetings to provide updates on the People Movement Project or similar People Movement Project-related information.

21. As-Built Plans. To furnish CITY a complete set of full-sized film positive reproducible asbuilt plans with electronic versions of the same files and any necessary operations manuals or operation documentation upon Project acceptance by the CITY.

22. Warranties. Upon acceptance of a Project by the CITY, assign any and all warranties relating to the Project which are capable of being assigned.

23. Return Unused Contingencies. If CITY has overpaid any amounts (including, but not limited to, any contingencies), SGVCOG shall return such amounts to CITY.

Docusign Envelope ID: A661F3D2-2788-493D-9EBA-59C8B8DC788A MOA – SGVCOG (People Movement Project) – 02.13.2025 5

24. Audits. To resolve all administrative issues relating to the People Movement Project, including resolving any issues regarding audits and responding to inquiries from the Funding Sources. SGVCOG shall ensure compliance with all funding requirements over which it exercises control and provide necessary reports, documentation, and other information consistent with Founding Sources requirements.

25. Records. To keep and maintain People Movement Project records including, without limitation, accounting records, policies and procedures, contract files, estimates, correspondence, change order files, invoices and any other supporting documentation that may be necessary to substantiate invoices submitted to the CITY or as may be required by Funding Sources. Such records shall be maintained for at five years after termination of this Agreement. The SGVCOG shall, upon reasonable notice from the CITY or a Funding Source, grant access to all such records for review and/or copying.

SECTION III-CITY RESPONSIBILITIES
The CITY Agrees:

1. Membership. To maintain membership in the SGVCOG during the entire Term of this Agreement.

2. City Representative. Designate a representative (“CITY Representative”) and contact information therefore, in writing to attend all Project-related meetings, including, but not limited to, meetings with consultants, contractors, stakeholders, field meetings, and status update sessions. In addition, upon request of SGVCOG, CITY’s representative shall attend SGVCOG governing body and committee meetings (e.g., Governing Board and Capital Projects and Construction Committee). Such CITY Representative shall be the SGVCOG’s primary contact with respect to the PARTIES coordination under this Agreement and shall make such efforts as necessary to ensure the CITY performs its responsibilities hereunder.

3. Project Priority. In consultation with the SGVCOG establish the sequencing and priority for implementing the Projects.

4. Betterments. During the course of a Project design, CITY may request the SGVCOG to include additional work in the Project scope. Said work shall be considered a "betterment" if it is requested by the City and not specifically included in the Project design, is not reasonably necessary for operation of the Project, is not eligible for, or within the scope of, the Funding Sources as determined by Funding Sources guidelines or other applicable laws or regulations, or is not designated as a required mitigation measure for the Project. The SGVCOG agrees to include betterments in its Invitation for Bids as long as the CITY makes a timely request for their inclusion, and they can be reasonably accommodated without causing undue Project delay or expense.

5. Betterments Construction Costs. To pay to the SGVCOG the cost of all betterment design, construction, and management expenses, including a 10% contingency, within thirty (30) Docusign Envelope ID: A661F3D2-2788-493D-9EBA-59C8B8DC788A MOA – SGVCOG (People Movement Project) – 02.13.2025 6
calendar days of the award of the construction contract for such betterments. If payment is not received within said period, the SGVCOG may, in its discretion, not include the betterment in a Project. If the PARTIES reach an agreement on the inclusion of additional betterments after construction contract award, the CITY shall pay SGVCOG the full cost of the added betterment, including the 10% contingency, prior to the execution of the change order for the betterment.

6. PA&ED for San Dimas Wash Project. CITY has undertaken development of the PA&ED documentation for the San Dimas Wash Project and shall complete same at its cost and expense.

7. Provide Existing CITY Plans. To timely provide all available plans and survey data of existing CITY infrastructure necessary for the implementation of the People Movement Project.

8. Additional Funding Sources. In the event there is insufficient funding, to cooperate with the SGVOCG in its efforts to secure additional funding to complete the People Movement Project.

9. Utilities. If existing public or private utilities conflict with the construction of the People Movement Project, CITY shall cooperate with the SGVCOG to make all necessary arrangements with the owners of such utilities, including CITY’s own utilities, for their protection, relocation, or removal. If there are costs associated with such protection, relocation, or removal that CITY must legally pay, CITY will pay the 100% of such costs.

CITY shall be responsible for all costs associated with the protection, relocation, or removal of its own utilities. Nothing in this Agreement shall restrict or affect SGVCOG’s right to enter into separate agreements with utilities for the protection, relocation, or removal of their facilities. To the extent requested by the SGVCOG the CITY shall enforce or delegate its authority to the SGVCOG to enforce under the CITY’s name, available rights under existing franchise agreements or other prior rights the CITY may have over public or private utilities or other entity facilities that may conflict with the construction of the People Movement Project.

10. Review Project Plans. To review Project plans at no cost and issue no fee encroachment permits to the SGVCOG or its contractors. CITY agrees to review Project plans and provide comments thereon within fifteen (15) calendar days of submittal by the SGVCOG or its consultant/contractor. Additionally, the CITY shall review and provide comments on the approved final plans from SGVCOG within thirty (30) calendar days of receipt. CITY understands that successful and timely completion of each Project requires the CITY to provide the necessary resources to timely review plans and respond to requests for information and submissions from the SGVCOG and consultants. CITY shall develop an intra-agency review committee or technical working group that includes all applicable CITY departments to circulate and facilitate review and comments regarding Project plans, as necessary. Should the CITY not provide complete written comments within the time periods set forth herein and not receive a written extension thereof from the SGVCOG Docusign Envelope ID: A661F3D2-2788-493D-9EBA-59C8B8DC788A MOA – SGVCOG (People Movement Project) – 02.13.2025 7
Representative, the SGVCOG may deem the relevant plan or other document approved, in whole or part, by the CITY.

11. City Ownership and Maintenance of a Project. Upon substantial completion of a Project in accordance with the approved plans and specifications as reasonably determined by the SGVCOG, the CITY shall take title to and maintain all rights-of-way and other properties that are part of the Project, including, but not limited to footing easements, slopes, landscaping, etc., that are not otherwise deemed surplus property by the SGVCOG.

12. CITY Inspections. Upon notice to the SGVCOG Representative, the CITY may conduct at its sole cost and expense, Project construction inspections. In conducting such inspections, the CITY shall not unreasonably interfere with construction or provide direction directly to the construction contractor, but rather coordinate with the SGVCOG Representative with respect to any concerns arising out of such inspections.

SECTION IV-PAYMENT

1. Invoicing. The SGVCOG shall submit invoices on no more than a monthly basis for its administrative costs, contractor costs and all other costs incurred in its performance of this Agreement, including any costs incurred toward implementation of the People Movement Project prior to the Effective Date of this Agreement. The invoice shall be in a form reasonably acceptable to the CITY and provide sufficient detail and backup of the work performed and the costs incurred for the period covered by the invoice and otherwise meets Funding Sources requirements. The SGVCOG shall be responsible for ensuring all contractor and subcontractor costs are allowable and reasonable under the applicable contract and in accordance with applicable Funding Sources regulations and guidelines.

2. Payment. CITY shall pay from the appropriate Funding Source each SGVCOG invoice within 30 days of its submission. Should the CITY reasonably dispute an invoice or portion thereof, it shall notify the SGVCOG within 15 days of receipt thereof and explain fully the reason for the dispute and the PARTIES Representatives shall attempt to resolve the dispute. If any amounts remain in dispute, the CITY shall pay the invoice except for such disputed amounts within such 30-day period. To the extent a dispute remains, the SGVCOG’s Executive Director and the CITY’s City Manager shall meet as soon as practical in an effort to resolve the dispute. Should a dispute remain after this meeting, the PARTIES shall resolve the dispute in accordance with Section V.4 herein.

3. Sufficiency of Funding Sources. If at any time it is determined by either the SGVCOG or CITY Representative that the cost of the People Movement Project or any particular Project, will exceed the Funding Sources or a Project budget, the SGVCOG’s and the CITY’s Representatives shall meet and determine whether the CITY is willing to fund any deficit in order to complete the People Movement Project or a Project, whether a Project or Projects should be reduced in scope, whether a Project should be eliminated, or some other action to be taken to ensure that the Funding Sources are sufficient to pay the cost of the People Movement Project. The PARTIES shall enter into an amendment to this Agreement to reflect their agreement.

Docusign Envelope ID: A661F3D2-2788-493D-9EBA-59C8B8DC788A MOA – SGVCOG (People Movement Project) – 02.13.2025 8

4. Project Cancellation. If the PARTIES cannot reach an agreement on funding or limiting the scope of the People Movement Project so there is sufficient funding, a PARTY may, in its reasonable discretion and upon written notice to the other PARTY, eliminate a Project or suspend a Project for which it has reasonably determined there is insufficient funding to complete, and such action shall not be considered a default of either PARTY. In the event of any such action, the PARTIES shall cease any further work thereon, except that which is reasonably necessary to eliminate or suspend a Project. The SGVCOG will be entitled to be reimbursed for all administrative and other costs and expenses incurred up to the cessation of work in the same manner as other costs incurred herein.

SECTION V-INDEMNITY AND DISPUTE RESOLUTION

1. CITY to Indemnify SGVCOG. SGVCOG, its member agencies and their respective elected and appointed boards, officials, officers, agents, employees, and volunteers (individually and collectively, "SGVCOG INDEMNITEES") shall have no liability to CITY INDEMNITEES or any other person, and CITY, pursuant to Government Code Section 895.4, shall indemnify, defend (using legal counsel of CITY's own choosing), protect and hold harmless the SGVCOG INDEMNITEES from and against, any liabilities, as defined herein, or legal challenges to the People Movement Project by anything done or omitted to be done by the CITY INDEMNITEES under or in connection with any work, authority or jurisdiction associated with the Project and delegated to CITY under this Agreement. This section shall not limit any contractor’s defense and indemnity requirements under any applicable agreement or insurance.

2. SGVCOG to Indemnify CITY. CITY, and its respective elected and appointed boards, officials, officers, agents, employees, and volunteers (individually and collectively, "CITY INDEMNITEES") shall have no liability to the SGVCOG INDEMNITEES or any other person, and SGVCOG, pursuant to Government Code Section 895.4, shall indemnify, defend (using legal counsel of SGVCOG's own choosing), protect and hold harmless CITY INDEMNITEES from and against, any liabilities, as defined herein, or legal challenges to the Project by reason of anything done or omitted to be done by the SGVCOG INDEMNITEES under or in connection with any work, authority or jurisdiction associated with the Project and delegated to SGVCOG under this Agreement. This section shall not limit any contractor’s defense and indemnity requirements under any applicable agreement or insurance.

3. Definition of “liabilities.” The term "liabilities" used in this Section V shall mean any and all judgments, awards, claims, demands, liabilities, injury (as defined by Government Code Section 810.8), obligations, litigation, fines, penalties, fees (including , without limitation, expert witness fees, engineering and defense costs and legal fees), costs (including, without limitation, any and all costs involved in instituting a direct condemnation proceeding, and any and all costs involved in defending an inverse condemnation proceeding, and any and all costs involved in an environmental cleanup or archaeological discovery), expenses (including, without limitation, attorneys fees and court costs), proceedings, suits and Docusign Envelope ID: A661F3D2-2788-493D-9EBA-59C8B8DC788A MOA – SGVCOG (People Movement Project) – 02.13.2025 9
actions of whatever kind, and damages of any nature whatsoever (including, without limitation, bodily injury, death, personal injury, or property damage).

4. Project Completion Procedures and Dispute Resolution. Prior to final acceptance of a Project, as completed under the terms of the Project's construction contract, the PARTIES will confer in good faith, to obtain CITY's concurrence that all components of the Project have been completed in substantial conformance with the approved plans and specifications. It is understood that CITY will not unreasonably withhold said concurrence.

Should SGVCOG and CITY be unable to agree on Project completion as discussed herein, then SGVCOG’s Executive Director and the CITY’s CITY Manager shall meet and confer, in good faith, to resolve the disagreement. If the disagreement has not been resolved at the end of thirty (30) days, then the disagreement will be submitted to mediation in accordance with the Mediation Rules of the American Arbitration Association. CITY and SGVCOG shall equally share in the costs of mediation and the mediator shall be acceptable to both PARTIES. If SGVCOG and CITY are unable to agree on the selection of a mediator, then assistance will be obtained from the American Arbitration Association. The PARTIES agree to participate in mediation and any associated negotiations for a period of at least thirty (30) days. If the disagreement cannot be resolved through mediation, the PARTIES may exercise all legal remedies available to them. Any other dispute as between the PARTIES under this Agreement that is not resolved administratively, shall be resolved in accordance with this Section V.4 upon the request of a PARTY.

SECTION VI-DEFAULT

1. Default. In the event a PARTY fails to satisfactorily perform or comply with the terms and conditions of this Agreement, the non-defaulting PARTY shall provide written notice to the defaulting PARTY with a 30-day period to cure the default or if the default is not reasonably susceptible of cure within such 30-day period the defaulting PARTY shall commence the cure of the default within such 30-day period and promptly complete such cure within a reasonable time to the satisfaction of the non-defaulting PARTY.

2. If a defaulting PARTY fails to cure a default to the satisfaction of the non-defaulting PARTY, the non-defaulting PARTY may terminate this Agreement and/or exercise any and all other rights and remedies which may be available in law or equity. A default shall not be subject to the dispute resolution provision contained in Section V.4 herein.

SECTION VII—MISCELLANEOUS

1. CITY May Request the Salvage of Materials. CITY may require that certain CITY owned materials be salvaged during Project construction. At the time of Project plan approval CITY shall notify SGVCOG of materials to be salvaged including the desired procedure for removal and delivery to a CITY designated storage facility. SGVCOG will include the request in the Project specifications. SGVCOG will not be liable for any costs associated with the subsequent reuse, storage, reclamation, or reinstallation of salvaged materials by CITY, and such activities will be considered delegated to CITY under this Agreement.

Docusign Envelope ID: A661F3D2-2788-493D-9EBA-59C8B8DC788A MOA – SGVCOG (People Movement Project) – 02.13.2025 10

2. Delivery of Written Notice. Every notice, demand, request, or other document or instrument delivered pursuant this Agreement shall be in writing, and shall be either personally delivered, sent by Federal Express or other reputable overnight courier, sent by email transmission with telephonic confirmation of actual receipt and the original subsequently delivered by other means, or sent by certified United States mail, postage prepaid, return receipt requested, to the addresses set forth below, or to such other address as a party may designate from time to time:

To CITY: City of Glendora
City Hall
116 E Foothill Blvd
Glendora, CA 91741
Attention: City Manager
Email: [email protected]
To SGVCOG: San Gabriel Valley Council of Governments
1333 Mayflower Ave # 360
Monrovia, CA 91016
Attn: Executive Director
Email: [email protected]

3. Entire Agreement. This Agreement constitutes the entire understanding and agreement of the PARTIES and integrates all of the terms and conditions mentioned herein or incidental hereto with respect to the subject matter hereof and supersedes all negotiations or previous agreements between the PARTIES with respect to all or part of the subject matter hereof.

4. Amendments Only in Writing. This Agreement may be amended in writing at any time by the mutual consent of the PARTIES. No amendment shall have any force or effect unless executed in writing by both PARTIES.

5. Severability. If any term, provision, covenant, or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions of the Agreement shall continue in full force and effect, unless and to the extent that the rights and obligations of one or both PARTIES would be materially altered or abridged by such interpretation.

6. California Law/Venue. This Agreement shall be construed and enforced in accordance with the laws of the State of California and venue shall be in Los Angeles Superior Court. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, void, or otherwise unenforceable, it shall not affect the validity of the remaining provisions.

7. Assignment. Except as set forth herein, no PARTY shall assign or otherwise transfer this Agreement or its right or interest or any part thereof to any third party, without the prior written consent of the other PARTY. Such consent shall not be unreasonably withheld. No assignment of this Agreement shall relieve the assigning party of its obligations until such obligations have been. assumed in writing by the assignee. When duly assigned in Docusign Envelope ID: A661F3D2-2788-493D-9EBA-59C8B8DC788A MOA – SGVCOG (People Movement Project) – 02.13.2025 11
accordance with the forgoing, this Agreement shall be binding upon and inure to the benefit of the assignee.

8. No Third-Party Beneficiaries. The PARTIES do not intend, nor shall this Agreement be interpreted to create any third-party beneficiaries.
[SIGNATURE PAGE FOLLOWS]
Docusign Envelope ID: A661F3D2-2788-493D-9EBA-59C8B8DC788A MOA – SGVCOG (People Movement Project) – 02.13.2025 12
IN WITNESS WHEREOF, the PARTIES hereto have caused this Agreement to be executed by their respective officers to be effective as of the date first written above.

CITY OF GLENDORA SGVCOG
Adam Raymond
City Manager
Marisa Creter
Executive Director
ATTEST: APPROVED AS TO FORM:

Kathleen R. Sessman
City Clerk/Communications Director
David DeBerry
SGVCOG General Counsel
APPROVED AS TO FORM:

Danny Aleshire
City Attorney
Docusign Envelope ID: A661F3D2-2788-493D-9EBA-59C8B8DC788A Feb 14, 2025 | 10:02 AM PST Feb 14, 2025 | 8:04 AM PST
Exhibit A - Scope of Work
The San Gabriel Valley Council of Governments (SGVCOG) will implement capital improvement projects on behalf of the City of Glendora, which include but are not limited to the following:

1. Glendora Avenue Project
The Project includes the construction of 0.5-mile of raised Class IV protected bikeway and pedestrian improvements along Glendora Avenue from Glendora Avenue/Foothill Boulevard to Glendora Avenue/Route 66. Project elements also include a protected intersection at Foothill Boulevard/Glendora Avenue, biofiltration curb extensions and enhanced crosswalk at Carroll Avenue/Glendora Avenue, roundabout at Ada Avenue/Glendora Avenue, wayfinding signage, and funding permitted, green street features such as dry wells and tree well filters. In addition, the project will utilize antique street lights that are no longer in operation and currently in City storage.

As part of this project the antique street lights will need to be refurbished before installation along Glendora Avenue, between Ada Avenue and Foothill Boulevard. It will also be imperative that this project is coordinated with the separate Glendora Avenue Water and Street Improvement Project (from Gladstone to Route 66) as well as the Foothill Boulevard Project (listed below) in order to mitigate any conflicts and reduce community impacts.

2. Preparation for Relocation of City Marquee and Traffic Signal Cabinet The City currently has a digital marquee located on Foothill Boulevard in front of the City Hall entrance. As part of a separate project, the City plans to relocate the marquee to the southeast corner (SEC) of Foothill Boulevard and Glendora Avenue; however, preparation work will be completed as part of this People Movement Project. In preparation for the relocation, conduit will be installed for the marquee's new location. Additionally, conduit will be installed to support the relocation of the traffic signal cabinet at the SEC of Foothill Boulevard and Glendora Avenue approximately 25 to 30 meters south along Glendora Avenue.

3. Little Dalton Wash Project
The Project includes the construction of 1.7 miles of Class I bicycle and pedestrian facilities to provide an eight-to-80 facility between the Colby Trail and Finkbiner Park along the Little Dalton Wash from the southern terminus of the Colby Trail located at the end of the cul-de-sac on N.

Loraine Avenue/Saga Street to Finkbiner Park located at 160 N. Wabash Avenue (one block north of Foothill Boulevard between Wabash Avenue and Cullen Avenue). This Project also includes street intersection crossing improvements, on-street Class III bike route due to right-of-way constraints, native landscaping, park amenities such as benches, water fountains, and monument signs.

4. San Dimas Wash Project
The Project includes the construction of 1.6 miles of Class I bicycle and pedestrian facilities along the San Dimas Wash from Sunflower Avenue/Gladstone Street to Grand Avenue/Arrow Highway.

This Project’s components include four street crossing/intersection improvement upgrades including three midblock crossings, one pedestrian scramble, native landscaping, and park amenities such as benches, water fountains, workout equipment, and trail monument signs.

Docusign Envelope ID: A661F3D2-2788-493D-9EBA-59C8B8DC788A

5. Foothill Boulevard Project
The Project includes the construction of 1.48 miles of Class IV protected bikeway and pedestrian improvements along Foothill Boulevard from Citrus Avenue to Minnesota Avenue. Elements include four traffic signal modifications, 16 ADA curb ramps, curb extensions and enhanced sidewalks. If all antique street lights are not utilized with the Glendora Avenue Project, remaining refurbished lights, pending available funding, will be included for installation along Foothill Boulevard. Coordination with the Glendora Avenue segment will be imperative to mitigate any conflicts and reduce community impacts.

6. Big Dalton Wash Project
The Project includes the construction of approximately 4.5 miles of Class I and Class II/IV bicycle facilities and pedestrian improvements along the Big Dalton Wash corridor from Dalton Canyon to Barranca Avenue. The design will prioritize seamless connectivity, safety, and clear directional signage to guide users along the entire route. Special attention will be given to the segment between Foothill Boulevard and Route 66, where the trail will temporarily diverge from the Wash to bypass the City’s Corporate Yard. In this section, the trail will reroute west to Loraine Avenue, proceed south to Route 66, and then reconnect with the Wash, ensuring a continuous and user-friendly experience.

Project Limits/Area & Location Map

Wabash Avenue (one block north of Foothill Boulevard between Wabash Avenue and Cullen Avenue).

3. San Dimas Wash Project
The project is located along the San Dimas Wash in the City of Glendora. The project limits are from Sunflower Avenue/Gladstone Street to Grand Avenue/Arrow Highway.

4. Foothill Boulevard Project
The project is located along Foothill Boulevard from Citrus Ave to Minnesota Ave.

5. Big Dalton Wash Project
The project is located along the Big Dalton Wash from Dalton Canyon Road to Barranca Avenue.

Docusign Envelope ID: A661F3D2-2788-493D-9EBA-59C8B8DC788A Project map for the Glendora Avenue, Little Dalton Wash, San Dimas Wash, Foothill Boulevard, and Big Dalton Wash Projects.

Docusign Envelope ID: A661F3D2-2788-493D-9EBA-59C8B8DC788A Exhibit B – Total Available Funds

1. San Dimas Wash
Source of Funds Phase SGVCOG/City Funds Amount
Local Revenue
Measure R Local
Return
Construction City $194,467
MSP Construction SGVCOG $637,133
State Revenue
ATP Cycle 6 Construction SGVCOG $1,500,000
Federal Revenue
Recreation Trails
Program
Construction City $1,000,000
City Contribution $1,194,467
SGVCOG
Contribution
$2,137,133
Total Secured $3,331,600

2. Glendora Avenue
Source of Funds Phase SGVCOG/City Funds Amount
Local Revenue
Measure R Local
Return
Construction City $133,318
Prop C Local Return Construction City $93,935
TDA Article III Construction City $20,000
Measure W Design – Specific to
Green Streets
City 315,000
MSP Design/Construction SGVCOG $2,680,066
State Revenue
State Budget
Allocation
Construction –
Specific to Antique
Street Lights
City $1,500,000
Federal Revenue
FY ’23 Federal
Earmark
Construction City $1,497,506
City Contribution $3,559,759
SGVCOG
Contribution
$2,680,066
Total Secured $6,239,825
Docusign Envelope ID: A661F3D2-2788-493D-9EBA-59C8B8DC788A

3. Little Dalton Wash
Source of Funds Phase SGVCOG/City Funds Amount
Local Revenue
Measure M Local
Return
Construction City $43,782
Prop C Local Return Construction City $10,060
MSP Design/Construction SGVCOG $1,682,801
State Revenue
ATP Cycle 6 Design SGVCOG $100,000
Federal Revenue
FY ’23 Federal
Earmark
Construction City $900,000
City Contribution $953,842
SGVCOG
Contribution
$1,782,801
Total Secured $2,736,643

4. Foothill Boulevard Project
Source of Funds Phase SGVCOG/City Funds Amount
Local Revenue
City CIP Design/Construction City $1,060,506
Federal Revenue
FY ’23 Federal
Earmark
Construction City $2,602,494
City Contribution $3,663,000
SGVCOG
Contribution
-
Total Secured $3,663,000

5. Big Dalton Wash
Source of Funds Phase SGVCOG/City Funds Amount
Local Revenue
MSP* Design/Construction SGVCOG $4,960,000
Federal Revenue
FY ’23 Federal
Earmark
Design/Construction City $850,000
City Contribution $850,000
SGVCOG
Contribution
-
Total Secured $5,810,000
*Pending final approval from Los Angeles County Metropolitan Transportation Authority (Metro).

Docusign Envelope ID: A661F3D2-2788-493D-9EBA-59C8B8DC788A

STAFF REPORT
TO: Mayor and Council Members DATE: June 23, 2026
FROM: Public Works DISTRICT(S): Citywide
SUBJECT: Introduction and First Reading of an Ordinance Amending Chapter 10.17 of the Glendora Municipal Code Regarding Skateboarding, Roller-Skating, Bicycling, Electric Bicycles, Electric Scooters and Other Motor Assisted Mobility Devices

RECOMMENDATION
That the City Council:

1. Find and determine that the proposed Ordinance is exempt from the California Environmental Quality Act (“CEQA”);

BICYCLING, ELECTRIC BICYCLES, ELECTRIC SCOOTERS, AND OTHER MOTOR-ASSISTED MOBILITY DEVICES IN CERTAIN DESIGNATED AREAS;"

3. Direct the preparation of a summary ordinance for publication; and

4. Adopt a City Council Resolution entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

GLENDORA, CALIFORNIA, DESIGNATING CERTAIN PUBLIC AREAS AS NO SKATEBOARDING, ROLLER

SKATING, BICYCLING, ELECTRIC BICYCLE, ELECTRIC SCOOTER, OR SIMILAR ACTIVITY AREAS PURSUANT TO CHAPTER 10.17 OF THE GLENDORA MUNICIPAL CODE."

STRATEGIC FOCUS AREAS
Goal 1 - Suburban Living

EXECUTIVE SUMMARY
On May 26, 2026, the City Council received a report regarding electric bicycles ("e-bikes"), electric scooters, and other motor-assisted mobility devices and provided policy direction to staff regarding potential amendments to Title 10 of the Glendora Municipal Code (GMC). The discussion was prompted by increasing concerns regarding unsafe riding behavior, conflicts between riders and pedestrians, operation within high pedestrian activity areas, and the growing use of e-bikes and similar mobility devices throughout the community.

Under the direction of City Council, staff has prepared the attached ordinance amending Chapter 10.17 of the GMC and the associated Resolution designating specific areas where restrictions would apply. The proposed amendments are intended to modernize the City's existing regulations, which were originally adopted prior to the widespread use of modern e-bikes and electric mobility devices.

The proposed ordinance incorporates current California Vehicle Code definitions for electric bicycles and other mobility devices, establishes prohibited unsafe riding behaviors, authorizes the designation of restricted riding areas by resolution, establishes penalties and impoundment authority for specified violations, creates an educational diversion program as an alternative to monetary penalties, and provides exemptions for mobility devices used by persons with disabilities and other assistive devices.

The resolution identifies specific locations where restrictions are warranted due to elevated pedestrian activity, including the Glendora Village, commercial centers, school frontages, playgrounds, parks, and trails. The proposed framework is intended to balance rider mobility and recreation with pedestrian safety, public awareness, and practical enforcement considerations.

The proposed ordinance and resolution reflect the policy direction provided by the City Council during the May 26, 2026 discussion and provide a flexible framework that may be modified over time as community needs evolve.

LEGISLATIVE HISTORY / PREVIOUS ACTIONS
Concerns regarding the operation of bicycles, skateboards, roller skates, and similar devices within pedestrianoriented areas are not new within the City of Glendora. Historical records indicate that concerns regarding bicycle operation on sidewalks and within commercial areas have existed within the community for decades.

On May 12, 1987, the City Council passed Ordinance 1509, amending the GMC to prohibit the riding of skateboards and roller skates along or across any public sidewalk from the east/west boundary of Glendora Avenue to Grand Avenue and the south/north boundary of Foothill Boulevard to Bennett Avenue. This ordinance did not modify any provision related to the use of bicycles within the specified area related to the GMC.

On February 9, 1993, the City Council passed Ordinance 1611, which amended GMC Section 10.16.030 and prohibited the riding of bicycles, tricycles, or 'coasters' on all sidewalks within the city. In addition, GMC Section

10.16.035 was amended to add roller blades to the list of prohibited activities (bikes, skateboards, and roller skates).

On June 13, 1995, the City Council unanimously adopted Ordinance 1641, which updated the GMC governing the use of skateboards, roller skates, bicycles and other similar activity on public streets, sidewalks or other public property, including schools by removing the blanket prohibition. The City took a more targeted approach and GMC Section 10.17.010 was amended to prohibit the use of any skateboard, roller skates, bicycles, roller blades or any similar device to ride or move about in or on any public or private property when that property had been designated and posted, prohibiting such conduct. Further, the Council included a provision in the GMC under Section

10.17.020(f), which prohibited conduct deemed to be a nuisance. Nuisance was defined as any conduct which was "injurious to health, or is indecent or offensive to the senses, or an obstruction to the free use of property, so as to interfere with the comfortable enjoyment of life, or property, or unlawfully obstructs the free passage or use, in the customary manner, or any public park, square, street or highway." On June 22, 1999, the City Council unanimously adopted an Urgency Ordinance that designated specific areas for skate and skateboarding in the City. The ordinance revised the existing GMC, by allowing for skating and skateboarding at the new facility in Finkbiner Park. The ordinance set general times of operation, designated skateboard and skate use, and established a requirement for safety gear, while specifying that drugs, alcohol, graffiti and tagging will not be allowed, and prohibited skating on any other City facilities. The ordinance also met all of the requirements of AB1296, which provided immunity to public agencies against potential claims by skateboarders and similar activities as long and an ordinance regulating the activity was adopted and proper signage was posted.

Under GMC Section 10.17.030, private property owners are allowed to designate their property as a "no skateboarding, roller skating or bicycling area" by posting the required signage, in compliance with GMC Section

10.17.050. Public areas were also permitted to be designated as prohibiting such conduct so long as the required signage was posted in compliance with California Vehicle Code section 22658(a), which requires a sign, measuring not less that 17"x22" with letters not less than 1" in height. A provision was included which allowed for the posting of such prohibited activities to be painted on sidewalks in lieu of posting the requited signage in the traditional fashion as noted above.

GMC Section 10.17.060 historically referenced a fine of $25 for violations related to skateboarding, roller skating or bicycling in prohibited areas; however, he current GMC does not specify a set fine structure based on the 2026 fee schedule. A fine of $50 for each occurrence, without a provision for an escalating fine for additional violations, would be consistent with fines typically associated with minor violations of the GMC, such as overnight parking.

GMC Chapter 10.17 defines roller skates, roller blades and skateboards by using the commonly understood definition for each. Bicycles were defined in accordance with California Vehicle Code section 231, as it was written at the time of publication. The GMC defined a bicycle as, "a device upon with a person may ride, propelled exclusively through human power through a belt chain, gears and having one or more wheels." A provision for electric bikes was not included in the municipal code at the time.

In 2022, the California Legislature amended Vehicle Code section 231 to include electric bikes, as provided in 312.5 of the California Vehicle code and established that an electric bicycle is also to be considered a bicycle.

California Vehicle Code section 312.5 defines electric bicycles as:
(a) An “electric bicycle” is a bicycle equipped with fully operable pedals and an electric motor that does not exceed 750 watts of power.
(1) A “class 1 electric bicycle,” or “low-speed pedal-assisted electric bicycle,” is a bicycle equipped with a motor that provides assistance only when the rider is pedaling, that is not capable of exclusively propelling the bicycle, except as provided in paragraph (4), that ceases to provide assistance when the bicycle reaches the speed of 20 miles per hour, and that is not capable of providing assistance to reach speeds greater than 20 miles per hour. (2) A “class 2 electric bicycle,” or “low-speed throttle-assisted electric bicycle,” is a bicycle equipped with a motor that may be used exclusively to propel the bicycle, and that is not capable of providing assistance when the bicycle reaches the speed of 20 miles per hour. (3) A “class 3 electric bicycle,” or “speed pedal-assisted electric bicycle,” is a bicycle equipped with a motor that provides assistance only when the rider is pedaling, that is not capable of exclusively propelling the bicycle, except as provided in paragraph (4), and that ceases to provide assistance when the bicycle reaches the speed of 28 miles per hour, and equipped with a speedometer.
(4) A class 1 or class 3 electric bicycle may have start assistance or a walk mode that propels the electric bicycle on motor power alone, up to a maximum speed of 3.7 miles per hour.

On May 26, 2026, the City Council received a comprehensive report regarding e-bike usage, community concerns, enforcement trends, and regulatory approaches being considered by other California jurisdictions. During that discussion, the City Council generally expressed support for a balanced approach emphasizing education, rider accountability, pedestrian safety, targeted restrictions within high pedestrian activity areas, and flexibility regarding future modifications as community conditions change.

DISCUSSION
The proposed ordinance updates Chapter 10.17 of the Glendora Municipal Code to address bicycles, electric bicycles, electric scooters, skateboards, roller skates, electrically motorized boards, and other mobility devices. The ordinance incorporates current California Vehicle Code definitions and establishes a regulatory framework focused on safety, education, and enforcement.

Definitions and Modernization
The proposed ordinance updates and expands definitions contained within Chapter 10.17 to reflect current State law and modern mobility devices. Definitions are included for electric bicycles, electric scooters, electrically motorized boards, electric personal assistive mobility devices, trails, mobility devices, and other related terms. The updated definitions are intended to provide consistency with applicable California Vehicle Code provisions while creating a framework that can accommodate future changes in mobility technology.

Unsafe Riding Provisions
The ordinance establishes a series of unsafe riding provisions intended to address behaviors that have generated recurring complaints from residents, businesses, schools, and visitors. Examples include operating at unsafe speeds, stunt riding, racing, failure to yield to pedestrians, carrying unauthorized passengers, operation of modified devices exceeding legal classifications, and other unsafe conduct. The proposed provisions are intended to focus enforcement efforts on rider behavior rather than solely on the type of device being operated.

Restricted Areas and Operational Controls
The ordinance authorizes the City Council to establish designated areas where certain mobility devices may be prohibited or restricted through adoption of a separate resolution. The accompanying resolution identifies areas where restrictions are warranted due to elevated pedestrian activity, unique site conditions, or safety concerns.

The proposed resolution includes restrictions applicable to the Glendora Village, the Glendora Marketplace, Diamond Ridge, school frontage areas, playgrounds, parks, natural trails, and urban shared-use trails. The proposed framework recognizes that different environments present different operational considerations and allows restrictions to be tailored to the specific conditions of each location.

Education and Diversion Program
Consistent with City Council direction, the ordinance emphasizes education and behavior modification. The proposed Bicycle Safety Education Class and Diversion Program would provide an opportunity for eligible participants to complete an educational program in lieu of, or in reduction of, monetary penalties. The program would include parent participation requirements for minors and would allow coordination with local public and private schools regarding bicycle and e-bike safety education efforts.

Staff believes the educational component represents one of the most significant elements of the proposed program and is intended to improve long-term rider behavior while promoting safe operation of mobility devices throughout the community.

Enforcement and Impoundment Authority
The ordinance establishes an updated fine structure and authorizes the impoundment of certain unlawfully operated electric bicycles, electric scooters, and similar mobility devices under specified circumstances. The proposed enforcement framework is intended to provide officers with tools to address repeat violations, modified devices that exceed legal classifications, and conduct that presents significant public safety concerns.

Signage and Public Outreach
Implementation of the ordinance and resolution will require a coordinated public education effort, including signage, educational materials, outreach to schools and commercial property owners, and public awareness campaigns.

Staff anticipates returning with implementation details regarding signage placement, educational materials, and program administration following adoption of the proposed ordinance and resolution.

The proposed ordinance and resolution are intended to provide a balanced approach that promotes mobility and recreation while protecting pedestrians, improving rider awareness, and addressing recurring public safety concerns identified by residents, businesses, schools, and the Glendora Police Department.

If the City Council determines that the proposed ordinance and resolution are consistent with the policy direction provided during the May 26, 2026 City Council discussion, staff recommends introduction and first reading of the ordinance and adoption of the accompanying resolution. The ordinance would subsequently be scheduled for second reading and adoption at the July 7, 2026 City Council meeting. Pursuant to State law, the ordinance would become effective thirty (30) days following its adoption.

Following adoption, staff will commence implementation efforts, including the development and installation of required signage, finalization of the bicycle and mobility device safety education curriculum, coordination with local schools and community stakeholders, public outreach and awareness efforts, and preparation of administrative procedures necessary to support enforcement and operation of the educational diversion program.

FISCAL IMPACT
There is no immediate fiscal impact associated with the recommended action. Staff time associated with policy development, ordinance preparation, and coordination efforts will be absorbed within existing departmental operating budgets. Implementation costs will include fabrication and installation of new or replacement signs which will be funded through Streets Operating Budget.

ENVIRONMENTAL DETERMINATION
The proposed Ordinance and Resolution are exempt from CEQA pursuant to CEQA Guidelines Sections 15061(b) (3) and 15301 and direct the filing of a Notice of Exemption.

Prepared By: Valerie Velasquez-Santoya, Assistant Public Works Director Concurs With: Not Applicable
Reviewed By: Moises Lopez, Interim Public Works Director Certified to Availability of Funds: Kyle Johnson, Finance Director/City Treasurer Approved By: Adam Raymond, City Manager
Legal Review: Danny Aleshire, City Attorney
CEQA Review: Not Applicable
Attachments
A_CEQA_Notice_Of_Exemption.pdf
B_Glendora_Ordinance_E-Bikes_Amending_Chapter_1017.pdf
C_Glendora_Resolution_E-Bike_Designated_Areas.pdf
D_PowerPoint.pdf

CITY OF GLENDORA
116 East Foothill Boulevard, Glendora, California 91741

CALIFORNIA ENVIRONMENTAL QUALITY ACT

NOTICE OF EXEMPTION
Project Title: Adoption of an Ordinance Amending Glendora Municipal Code 10.17 Regulating Bicycles, Electric Bicycles, Electric Scooters, and Other Mobility Devices Project Location: Citywide, City of Glendora, including various existing public rights-of- way, sidewalks, trails, parks, plazas, school frontages and other public facilities throughout the City of Glendora.

Project Sponsor: City of Glendora
Mailing Address: 116 E Foothill Blvd, Glendora, CA 91741 General Plan Land Use Designation: Applies Citywide across multiple General Plan Land Use Designations Zoning Designation: Citywide across various and multiple zoning designations.

Project Description: The project consists of the adoption of an ordinance amending Chapter 10.17 of the Glendora Municipal Code to regulate the operation of bicycles, electric bicycles, electric scooters, skateboards, and other mobility devices within the City, and adoption of a companion resolution designating certain public areas where such devices may be prohibited or restricted. The project establishes operational regulations, unsafe riding standards, educational diversion programs, and enforcement provisions applicable to existing public facilities and rights-of-way.

No physical improvements, construction activities, or expansion of existing facilities are proposed.

Surrounding Land Uses and Setting: Existing urban development consisting of residential neighborhoods, commercial centers, schools, parks, trails, public rights-of-way, and other developed public and private properties throughout the City of Glendora.

The City Council recommends the following exempt status / findings:

Ministerial (Sec. 15073)
Declared Emergency (Sec. 15071(a))
Emergency Project (Sec. 15071(b) and (c))
Categorical Exemption. Code Number: CEQA Guidelines §15301 (Class 1 Existing Facilities) and Common Sense Exemption, CEQA Guidelines §15061(b)(3) Statutory Exemption.

Reasons why project is exempt: The project is exempt from CEQA pursuant to CEQA Guidelines Sections 15061(b)(3) and 15301 because it does not authorize construction, expansion of facilities, ground disturbance, or any physical change to the environment.

Date:

Jeff Kugel, Director of Community Development Department The above recommended exempt status and findings were adopted by the following body:

Glendora City Council on June 23, 2026
Date: June 23, 2026
Valerie Velasquez-Santoya, Assistant Public Works Director Ordinance No. ______ Page 1 of 11
ORDINANCE NO. _______

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GLENDORA, CALIFORNIA, AMENDING CHAPTER 10.17 OF TITLE 10 OF THE

GLENDORA MUNICIPAL CODE REGARDING SKATEBOARDING,

ROLLER-SKATING, BICYCLING, ELECTRIC BICYCLES, ELECTRIC

SCOOTERS, AND OTHER MOTOR-ASSISTED MOBILITY DEVICES IN

CERTAIN DESIGNATED AREAS

THE CITY COUNCIL
City of Glendora, California
WHEREAS, the City of Glendora (“City”) is a general law city organized under the laws of the State of California; and,
WHEREAS, the City Council recently adopted/amended Chapter 10.17 of the Glendora Municipal Code by Ordinance No. 1641 on June 13, 1995, and by Ordinance No. 1698 on June 22, 1999, to regulate skateboarding, roller skating, roller blading, bicycling, and similar activities in certain designated areas; and, WHEREAS, the use of electric bicycles (“e-bikes”), electric scooters, electrically motorized boards, and similar motor-assisted mobility devices has increased significantly throughout Southern California, including within the City of Glendora; and, WHEREAS, while e-bikes and similar devices provide mobility, recreation, and transportation benefits, the City has experienced increasing concerns related to unsafe riding behaviors, excessive speeds, conflicts with pedestrians, operation within crowded commercial and recreational areas, and use by minors on high-powered devices; and, WHEREAS, the City has received concerns from residents, businesses, schools, and members of the Glendora Village Business Improvement District regarding the unsafe operation of mobility devices in pedestrian-oriented areas, including the Glendora Village, the Glendora Marketplace, Diamond Ridge, shopping centers, parks, playgrounds, sidewalks, school frontages, and natural and urban trails; and, WHEREAS, on May 26, 2026, staff presented to the City Council a report on potential regulations relating to e-bikes and other motor-assisted mobility devices, and the City Council directed staff to prepare an ordinance amending Chapter 10.17 of the Glendora Municipal Code for the Council’s consideration; and, WHEREAS, the California Legislature, through California Vehicle Code Sections 312.5, 313, 313.5, and 407.5, has defined and classified electric bicycles, electric personal assistive mobility devices, electrically motorized boards, and motorized scooters, and the City desires to incorporate these definitions within the Glendora Municipal Code; and,
WHEREAS, California Vehicle Code Section 21100 and other applicable provisions authorize cities to adopt local regulations governing the use of bicycles, electric bicycles, motorized scooters, electrically motorized boards, and similar devices on highways, sidewalks, trails, and other public rights-of-way within their jurisdiction; and, Ordinance No. ______ Page 2 of 11
WHEREAS, the City Council finds that the adoption of updated regulations is necessary and appropriate to protect the public health, safety, and welfare of pedestrians, riders, motorists, and the community at large; and,
WHEREAS, the City Council further finds that this Ordinance is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Sections 15061(b)(3) and 15301, as it is a regulatory action that can be seen with certainty to have no possibility of a significant effect on the environment.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GLENDORA, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. The foregoing recitals are true and correct and are incorporated herein by this reference as findings of the City Council.

SECTION 2. CEQA Finding. The City Council finds that this Ordinance is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Sections 15061(b)(3) and 15301. The City Clerk is directed to file a Notice of Exemption in accordance with CEQA.

SECTION 3. Chapter 10.17 of Title 10 of the Glendora Municipal Code is hereby amended in its entirety to read as set forth herein. Deleted text is shown in strikethrough and new text is shown in bold:

CHAPTER 10.17

SKATEBOARDING, ROLLER SKATING, BICYCLING PROHIBITED IN CERTAIN

DESIGNATED AREAS

SKATEBOARDING, ROLLER SKATING, BICYCLING, ELECTRIC BICYCLES,

ELECTRIC SCOOTERS, AND OTHER MOTOR-ASSISTED MOBILITY DEVICES

PROHIBITED OR RESTRICTED IN CERTAIN DESIGNATED AREAS

SECTIONS

10.17.010 Skateboarding, Roller Skating, Roller Blades, Bicycling, Electric Bicycles, Electric Scooters, and Similar Activities Prohibited or Restricted in Certain Designated Areas.

10.17.020 Definitions.

10.17.030 Designation of Private Property as No Skateboarding, Roller Skating, Bicycling, or Similar Activity or Bicycling Area.

10.17.040 Designation of Public Property as No Skateboarding, Roller Skating, Bicycling, Electric Bicycle, Electric Scooter, or Similar Activity Area by Resolution.

10.17.050 Posting of Signs Required, Content.

10.17.055 Unsafe Riding Prohibited.

10.17.056 Speed Limits on Trails, Sidewalks, and Travel Corridors.

10.17.060 Penalties and Impoundment.

10.17.065 Diversion Program; Bicycle Safety Education Class.

10.17.070 Exemption from Provisions of this Chapter.

Ordinance No. ______ Page 3 of 11

10.17.010 Skateboarding, Roller Skating, Roller Blades, Bicycling, Electric Bicycles, Electric Scooters, and Similar Activities Prohibited or Restricted in Certain Designated Areas.
(a) It shall be unlawful and subject to punishment in accordance with Section

10.17.060 of this Chapter, for any person utilizing or riding upon any skateboard, roller skates, bicycle, roller blades, electric bicycle, electric scooter, electrically motorized board, motorized scooter, in-line skates, electric personal assistive mobility device, or any similar deviceMobility Device to ride or move about in or on any Public Property public or pPrivate pProperty when the same property has been designated and posted as a No Skateboarding, Roller Skating, Roller Blading, Bicycling, Electric Bicycle, Electric Scooter, or Similar Activity Area, provided, however, nothing in this chapter shall be construed or deemed to negate or abrogate any right granted to bicycle riders by the California Vehicle Code.
(b) No person shall use a skateboard, roller blades, roller skates, bicycle, electric bicycle, electric scooter, electrically motorized board, motorized scooter, in-line skates, or similar deviceMobility Device outside of a designated No Skateboarding, Roller Skating, Bicycling, Electric Bicycle, Electric Scooter, or Similar Activity Area in an unsafe manner or one which creates a nuisance as defined in section 10.17.020(f).
(c) No person shall place a ramp or foreign matter including but not limited to wax, grease or other lubricant, friction reducing agent or other physical aid which enhances or enables skateboarding, bicycling, electric bicycle or electric scooter operation, or roller skating performance, on any sidewalk, step, hand rail, bench, wall or other improvement on public property or on other than their own Private pProperty without consent of the owner.

10.17.020 Definitions.

For the purposes of this Chapter, the following words shall have the meanings ascribed:
(a) “Bicycle” is defined in California Vehicle Code Section 231 as a device upon which any person may ride, propelled exclusively by human power through a belt, chain, or gears, and having one or more wheels.
(b) “Business District” shall be defined as designated in Section 235 of the California State Vehicle Code.
(c) “Designated Area” shall mean any Public Property or Private Property, sidewalk, trail, plaza, park, playground, school frontage, parkway, or other location designated by Resolution of the City Council, by the property owner pursuant to Section 10.17.030, or by an authorized public agency pursuant to Section 10.17.040, as a No Skateboarding, Roller Skating, Bicycling, Electric Bicycle, Electric Scooter, or Similar Activity Area.

Ordinance No. ______ Page 4 of 11
(d) “Electric Bicycle” or “E-Bike” shall have the same meaning as set forth in California Vehicle Code Section 312.5, as amended from time to time, and shall include the following classes:
(1) Class 1 Electric Bicycle: An electric bicycle equipped with a motor that provides assistance only when the rider is pedaling and ceases to provide assistance when the bicycle reaches 20 miles per hour. (2) Class 2 Electric Bicycle: An electric bicycle equipped with a motor that may be used exclusively to propel the bicycle and is not capable of providing assistance when the bicycle reaches 20 miles per hour. (3) Class 3 Electric Bicycle: An electric bicycle equipped with a motor that provides assistance only when the rider is pedaling and ceases to provide assistance when the bicycle reaches 28 miles per hour, and is equipped with a speedometer.
(e) “Electrically Motorized Board” shall have the same meaning as set forth in California Vehicle Code Section 313.5, as amended from time to time. (f) “Electric Personal Assistive Mobility Device” or “EPAMD” shall have the same meaning as set forth in California Vehicle Code Section 313, as amended from time to time.
(1) Creates a risk of injury to any person or damage to Public Property or Private Property;
(2) Endangers, harasses, intimidates, or interferes with pedestrians, motorists, bicyclists, or other lawful users use of Public Property or Private Property;
(3) Obstructs, impedes, or restricts the free passage of pedestrians, persons with disabilities, vehicles, or emergency responders; (4) Otherwise creates a condition that threatens public safety or unreasonably interferes with the comfortable enjoyment of life, property, or public spaces.
(g) “Mobility Device” shall mean and include, collectively, Bicycles, Electric Bicycles, electric personal assistive mobility devices, Electrically Motorized Boards, Motorized Scooters, Skateboards, Roller Skates, and any similar wheeled apparatus or device used for transportation or recreation, whether powered by human, gravitational, electrical, or mechanical means. (h) “Motorized Scooter” or “Electric Scooter” or “E-Scooter” shall have the same meaning as set forth in California Vehicle Code Section 407.5, as amended from time to time.
(i) “Nuisance” shall include, but is not limited to, the operation, parking, congregation or use of any bicycle, electric bicycle, motorized bicycle, scooter, skateboard, electric skateboard, hoverboard, or similar device in a manner that:is defined as any activity which is injurious to health, or is indecent or offensive to the senses, or an obstruction to the free use of property, so as to Ordinance No. ______ Page 5 of 11
interfere with the comfortable enjoyment of life or property, or unlawfully obstructs the free passage or use, in the customary manner, of any public park, square, street, or highway.
(j) “Private Property” shall mean any property held by private interests which is used primarily for business, commercial, office space, business park, religious, multi-family, or recreational purposes. This shall also include the parking facilities for these “Private Property” areas.
(k) “Public Property” shall mean any property owned or maintained by the City of Glendora, any public agency or public school district, and any public utility within the geographical boundaries of the City of Glendora, including but not limited to sidewalks, streets, alleys, parkways, trails, parks, playgrounds, plazas, and other public rights-of-way and public facilities.
(l) “Roller skates” or “Roller blades” shall mean any footwear, or device which may be attached to the foot or footwear, to which wheels are attached, including wheels that are “in line” and where such wheels may be used to aid the wearer in moving or propulsion.
(m) “Sidewalk” shall have the same meaning as set forth in California Vehicle Code Section 555, as amended from time to time. (n) “Skateboard” shall mean a board of any material, which has wheels attached to it and which, if propelled or moved by human, gravitational, or mechanical power, and to which there is not fixed any device or mechanism to turn or control the wheels.
(o) “Trail” shall mean any path, route, or way designated by the City of Glendora for pedestrian, bicycle, equestrian, recreational, transportation or other lawful use including but not limited to urban shared-use paths and natural surface trails within parks, open space, and rights-of-way. The permitted uses of any Trail shall be as established by this Chapter, City Council Resolution, posted signage, or applicable law.

10.17.030 Designation of Private Property as No Skateboarding, Roller Skating, Bicycling, or Similar Activity or Bicycling Area.

Owners of “private property” Private Property may designate their property as a No Skateboarding, Roller Skating, Bicycling, Electric Bicycle, Electric Scooter, or Similar Activity or Bicycling Area by posting same signage in conformance with 10.17.050 of this Chapter.

10.17.040 Designation of Public Property as No Skateboarding, Roller Skating, Bicycling, Electric Bicycle, Electric Scooter, or Similar Activity Area by Resolution.

Public agencies may designate any public roadway, sidewalk, parking lot, or other public property as a No Skateboarding, Roller Skating, Bicycling or Similar Activity Area by the posting of appropriate signage in accordance with Section 10.17.050 of this Chapter.

Ordinance No. ______ Page 6 of 11
(a) The City Council may, by Resolution adopted from time to time, designate any public roadway, sidewalk, parking lot, trail, park, playground, plaza, school frontage, commercial frontage, or other Public Property as a No Skateboarding, Roller Skating, Bicycling, Electric Bicycle, Electric Scooter, or Similar Activity Area in which the use of one or more of such devices is prohibited or restricted.
(b) A Resolution adopted pursuant to this Section shall identify, with specificity, the Public Property or area subject to the applicable prohibition or restriction, the types of devices prohibited or restricted, and any hours, days, conditions, or exceptions applicable to the prohibition or restriction. (c) Other public agencies, including public school districts and public utilities, may designate property under their respective ownership or control as a No Skateboarding, Roller Skating, Bicycling, Electric Bicycle, Electric Scooter, or Similar Activity Area by the posting of appropriate signage in accordance with Section 10.17.050 of this Chapter.
(d) Prohibitions and restrictions adopted by Resolution shall take effect upon the posting of signage in accordance with Section 10.17.050 of this Chapter.

10.17.050 Posting of Signs Required, Content.

Prior to the enforcement of the prohibition on skateboarding, roller skating, bicycling, electric bicycle use, electric scooter use, or similar activity, as listed in 10.17.010(a) the area so designated shall be posted with signs signage which provides substantially as follows:
“Skateboarding, roller skating, bicycling, electric bicycles, electric scooters, or similar activity is prohibited by Glendora Municipal Code Section 10.17. Any violation is punishable by a fine of $25$50 for the first offense. Glendora Police Department 914-8250(626) 914-8250.”
The sign may contain only those items which the City or other public agency or property owner wishes to prohibit. For example, if there is no desire to limit bicycling, the posting would not contain the word “bicycling”.

Such prohibition shall apply to the property or area so designated once the property or area has been posted with signs in plain view at all entrances to the property or area. Signs so posted at the entrances to the property or area, shall comply with signage requirements as set forth under California Vehicle Section 22658(a)(1)Code Section 22658(a). These signs will be a minimum of 17” x 22” with lettering not less than one inch in height. Public sidewalks or other surfaced areas may be painted with this warning in lieu of the foregoing signage requirement. It shall be the responsibility of the property owner or tenant(s) to post and maintain all signs prohibiting skateboarding, roller skating, bicycling, electric bicycle use, electric scooter use, or bicycling similar activity.

Ordinance No. ______ Page 7 of 11
Signage installed by or at the direction of the City of Glendora pursuant to a Resolution adopted under Section 10.17.040 shall additionally comply with the requirements of the California Manual on Uniform Traffic Control Devices (CA MUTCD), where applicable.

10.17.055 Unsafe Riding Prohibited.

It shall be unlawful for any person to operate any Bicycle, Electric Bicycle, Motorized Scooter, Electrically Motorized Board, Skateboard, Roller skates, or other Mobility Device within the City of Glendora in an unsafe manner, including, but not limited to, any of the following:
(a) Operating a Mobility Device in an area where such operation is prohibited by the California Vehicle Code or by signage installed by the City or any private property owner or against the flow of traffic; (b) Operating a Mobility Device at an unsafe speed for the conditions, including but not limited to weather, surface, visibility, or pedestrian or vehicular traffic;
(c) Intentionally swerving or riding around stopped or slowed traffic or pedestrians;
(d) Racing, performing stunt riding, reckless riding, hazardous maneuvers, “wheelies,” “jumping,” or other acrobatic stunts on any sidewalk, roadway, Trail, or Public Property;
(e) Failing to reduce speed and yield the right-of-way to pedestrians on any sidewalk, crosswalk, Trail, plaza, or other Public Property; (f) Carrying passengers when the Mobility Device is not designed or equipped to safely accommodate passengers;
(g) Operating a Mobility Device while utilizing a hand-held mobile communication device in a manner that would compromise the safe operation of the Mobility Device;
(h) Operating a Mobility Device that has been modified in a manner that exceeds the speed, power, or other operational limits established by the California Vehicle Code for the applicable Mobility Device; and/or (i) Operating a Class 3 Electric Bicycle on any sidewalk, public off-road Trail, or other area where such operation is prohibited by State law or by this Chapter.

10.17.056 Speed Limits on Trails, Sidewalks, and Travel Corridors. (a) The City of Glendora shall have the authority to establish and post maximum speed limits on Trails, sidewalks, parkways, plazas, and other related travel corridors under the jurisdiction of the City, where the City Ordinance No. ______ Page 8 of 11
Engineer, City Manager, or his or her designee determines such posting is necessary to protect the safety of pedestrians, riders, and other users. (b) No person shall operate any Bicycle, Electric Bicycle, Motorized Scooter, Electrically Motorized Board, or other Mobility Device at a speed in excess of the speed limit lawfully posted under this Section. (c) In the absence of a posted speed limit, no person shall operate a Mobility Device at a speed greater than is reasonable or prudent having due regard for weather, visibility, the traffic on, and the surface and width of, the Trail, sidewalk, or travel corridor, and in no event at a speed which endangers the safety of persons or property.

10.17.060 Penalties and Impoundment.

Any violation of this chapter is deemed an infraction, punishable by a fine of Twenty-Five Dollars ($25). A second and all subsequent violations of this Chapter shall be punishable by a fine of Fifty Dollars ($50).
(a) Any violation of this Chapter is deemed an infraction. Unless otherwise specified by State law, the schedule of fines for violations of this Chapter shall be as follows:
(1) First violation: a fine of Fifty Dollars ($50);
(2) Second violation within a twelve (12) month period: a fine of One Hundred Dollars ($100); and,
(3) Third and each subsequent violation within a twelve (12) month period: a fine of Two Hundred Dollars ($200).
(b) Impoundment Authority. In addition to any fine imposed under subsection (a), and notwithstanding any other provision of this Chapter, the Glendora Police Department, or any peace officer authorized by the Chief of Police, shall have the authority to impound any Electric Bicycle, Electric Scooter, Motorized Scooter or other Mobility Device subject to the City’s impoundment authority as allowed by law, used in the commission of any violation of this Chapter or the California Vehicle Code, including, but not limited to, any Mobility Device that has been modified to exceed the operational limits established for its classification, or any Mobility Device operated by a person under the influence of alcohol or any drug.

If a juvenile subject is cited or arrested for a violation of this Chapter and the Electric Bicycle, Electric Scooter or other Mobility Device is impounded, pursuant to subsection (b), the Mobility Device may be released to a responsible adult. The fee for the release will be consistent with the City of Glendora Master Schedule of Fees for Services. Prior to the release of the Mobility Device, the subject who was arrested or cited for the violation, which resulted in the impoundment of the Mobility Device, must show proof of completion of the Diversion Program as defined in 10.17.065.

Ordinance No. ______ Page 9 of 11
Mobility Devices impounded and retained by the Police Department hereunder shall be considered abandoned after a period in excess of 90 days and may be disposed of as restricted by Civil Code Sections 2080.1, 2080.2, 2080.3, 2080.4 and 2080.5.
(c) Parental Responsibility. Each parent or legal guardian, having custody and control of an individual under the age of 18 years,who violates this Chapter shall be jointly and severally liable with such minor for any violation.

10.17.065 Diversion Program; Bicycle Safety Education Class. (a) In lieu of payment of any fine imposed under Section 10.17.060, and in the sole discretion of the Chief of Police or his or her designee, any person cited for a violation of this Chapter may be offered the opportunity to participate in a City-provided bicycle and mobility device safety education class (“Diversion Program”). Successful completion of the Diversion Program, including any required parental participation for minors, may result in the waiver or reduction of the fine, as determined by the Chief of Police or his or her designee.
(b) The rules, curriculum, eligibility requirements, fees, attendance requirements, and procedures governing the Diversion Program shall be established by Policy of the Glendora Police Department and may be amended from time to time at the discretion of the Chief of Police. (c) Permitting System. The Glendora Police Department shall establish a permitting system to track attendance and successful completion of the Diversion Program. A permit or certificate of completion issued under this program shall serve as proof of participation in the Diversion Program. (d) School Coordination. The Diversion Program (educational/training program) established under this Section may, upon request by a public or private school operating within the City, be utilized by such school as a basis for determining whether to allow Electric Bicycles, Motorized Scooters, or other Mobility Devices on its campus. The City Manager may enter into memoranda of understanding or other written agreements with school districts to coordinate the implementation of this subsection.

10.17.070 Exemption from the Provisions of this Chapter.

Any device designated, intended, and used solely for the transportation of infants, young children, persons with disabilities, or individuals with mobility limitations, including but not limited to motorized wheelchairs, mobility scooters, Electric Personal Assistive Mobility Devices, or similar assistive devices the handicapped, or incapacitated persons, devices designed, intended, and used for the transportation of merchandise to and from the place of purchase and other wheeled devices, shall be exempted from this Chapter. Police officers, code enforcement officers, and other public agency personnel who are performing duties in their official capacity are exempt from provisions of this Ordinance No. ______ Page 10 of 11
chapter. Furthermore, the City Council may, by Resolution, suspend the enforcement provisions of this Chapter to accommodate special events, parades, or other community activities when so requested by the event organizer.

Nothing in this Chapter is intended to apply to or otherwise restrict Mobility Devices used in a safe manner by physically disabled persons as defined under the Americans with Disabilities Act (42 U.S.C. Sections 12101, et seq.) and Section 36.311 of Title 28 of the Code of Federal Regulations.

SECTION 4. Severability. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each section, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

SECTION 5. Repealer. All ordinances and parts of ordinances of the City of Glendora in conflict with this Ordinance are hereby repealed to the extent of such conflict, and no further.

SECTION 6. Penalty Clause. Any person, corporation, or association violating any provision of this Ordinance shall be subject to the penalties set forth in Section

10.17.060 of the Glendora Municipal Code, as amended by this Ordinance.

SECTION 7. Effective Date. The Mayor shall sign this Ordinance and the City Clerk shall attest and certify to the passage and adoption thereof and cause same to be published at least once in the San Gabriel Valley Examiner, a weekly newspaper of general circulation, published in the City of Glendora, which newspaper is hereby designated for that purpose (Cal. Govt. Code § 40806). This Ordinance shall be effective on the thirtieth (30th) day after its adoption by the City Council.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Glendora this ___ day of ____________, 2026.

BY: __________________________________

DAVID FREDENDALL
Mayor
APPROVED AS TO FORM:

Aleshire & Wynder, LLP
__________________________

DANNY ALESHIRE
City Attorney
Ordinance No. ______ Page 11 of 11

CERTIFICATION
I, do hereby certify that the foregoing Ordinance was introduced for first reading on the _____ day of ______________, 2026. Thereafter, said Ordinance was duly approved and adopted at a regular meeting of the City Council on the _____ day of ______________, 2026, by the following roll call vote:

AYES: MEMBERS:

NOES: MEMBERS:

ABSENT: MEMBERS:

ABSTAIN: MEMBERS:

I further certify that pursuant to Government Code Section 36933(c)(l ), a summary of said Ordinance was published as required by law in a newspaper of general circulation in the City of Glendora, California on the ______________ and ________________.

Dated:
___________________________________
KATHLEEN R. SESSMAN
City Clerk/Communications Director
Resolution CC 2026-____ Page 1 of 5
RESOLUTION CC 2026-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GLENDORA,

CALIFORNIA, DESIGNATING CERTAIN PUBLIC AREAS AS NO

SKATEBOARDING, ROLLER SKATING, BICYCLING, ELECTRIC

BICYCLE, ELECTRIC SCOOTER, OR SIMILAR ACTIVITY AREAS
PURSUANT TO CHAPTER 10.17 OF THE GLENDORA MUNICIPAL
CODE

THE CITY COUNCIL
City of Glendora, California
WHEREAS, the City Council of the City of Glendora has adopted Chapter 10.17 of the Glendora Municipal Code, as amended by Ordinance No. ______, which regulates the use of skateboards, roller skates, in-line skates, bicycles, electric bicycles, electric scooters, electrically motorized boards, motorized scooters, and other mobility devices within the City; and,
WHEREAS, Section 10.17.040 of the Glendora Municipal Code authorizes the City Council, by Resolution, to designate any public roadway, sidewalk, parking lot, trail, park, playground, plaza, school frontage, commercial frontage, or other public property as a No Skateboarding, Roller Skating, Bicycling, Electric Bicycle, Electric Scooter, or Similar Activity Area in which the use of one or more of such devices is prohibited or restricted; and,
WHEREAS, the City has received concerns from residents, businesses, schools, and members of the Glendora Village Business Improvement District regarding the unsafe operation of mobility devices in pedestrian-oriented areas, including the Glendora Village, the Glendora Marketplace, Diamond Ridge, schools, parks, playgrounds, sidewalks, and trails; and,
WHEREAS, between January 1, 2024 and April 23, 2026, the Glendora Police Department documented over three hundred fifty (350) calls for service related to e-bikes and similar mobility devices, and sixteen (16) reported traffic collisions involving e-bikes within the City; and,
WHEREAS, the City Council has determined that the areas designated by this Resolution exhibit high pedestrian activity, narrow travel corridors, or other site-specific conditions that warrant the prohibition or restriction of mobility devices in order to protect the public health, safety, and welfare; and,
WHEREAS, upon adoption of this Resolution, the City shall post signage at the designated areas in conformance with Section 10.17.050 of the Glendora Municipal Code and California Vehicle Code Section 22658(a), and shall comply with the California Manual on Uniform Traffic Control Devices (CA MUTCD) where applicable; and, Resolution CC 2026-____ Page 2 of 5
WHEREAS, the City Council finds that this Resolution is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Sections 15061(b)(3) and 15301, as it involves the regulation of existing public facilities and can be seen with certainty to have no possibility of a significant effect on the environment.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GLENDORA, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. Recitals. The foregoing recitals are true and correct and are incorporated herein by this reference as findings of the City Council.

SECTION 2. Designation of No Skateboarding, Roller Skating, Bicycling, Electric Bicycle, Electric Scooter, or Similar Activity Areas. Pursuant to Section

10.17.040 of the Glendora Municipal Code, the following Public Property areas within the City of Glendora are hereby designated as No Skateboarding, Roller Skating, Bicycling, Electric Bicycle, Electric Scooter, or Similar Activity Area, subject to the prohibitions and restrictions specified below:
(a) Glendora Village.

All sidewalks, public plazas, parkways, and pedestrian walkways within the boundaries of the Glendora Village Business Improvement District. The use of bicycles, electric bicycles, electric scooters, electrically motorized boards, motorized scooters, skateboards, roller skates, in-line skates, and similar mobility devices is prohibited on sidewalks, public plazas, parkways, and pedestrian walkways within this area. Riders must dismount and walk such devices within this area.
(b) Glendora Marketplace and Diamond Ridge.

All sidewalks, pedestrian walkways, parking lot pedestrian corridors, and storefront frontage areas within the Glendora Marketplace and Diamond Ridge shopping centers. The use of bicycles, electric bicycles, electric scooters, electrically motorized boards, motorized scooters, skateboards, roller skates, in-line skates, and similar mobility devices is prohibited on sidewalks and pedestrian walkways within these areas.
(c) School Frontages.

All sidewalks, parkways, and pedestrian walkways within 100 feet, in any direction, of the frontage for any public or private school within the City of Glendora, including but not limited to Glendora High School, Goddard Middle School, Sandburg Middle School, and all elementary schools. The use of electric bicycles, electric scooters, electrically motorized boards, and motorized scooters is prohibited on sidewalks, parkways, and pedestrian walkways within these areas during school hours (one (1) hour before through one (1) hour after the regular school day). All other mobility devices shall be operated at a walking pace within these areas during such hours.
(d) City Parks and Playgrounds.

All pedestrian walkways, playground areas, picnic areas, sport court frontages, and other pedestrian-oriented areas within all City parks, including but not limited to Finkbiner Park, Louie Pompei Memorial Sports Park, South Hills Park, Resolution CC 2026-____ Page 3 of 5
Manooshian Park, and all other City-owned parks and playgrounds. The use of bicycles, electric bicycles, electric scooters, electrically motorized boards, motorized scooters, skateboards, roller skates, and in-line skates is prohibited within such designated areas at all times. Bicycles and Class 1 and Class 2 electric bicycles may be operated on designated park pathways at safe speeds yielding to pedestrians.
(e) Natural Trails.

All natural surface trails within the City of Glendora, including but not limited to trails within the Glendora Wilderness Park, Gordon Mull Preserve, and similar open space areas. The use of Class 2 and 3 electric bicycles, electric scooters, electrically motorized boards, motorized scooters, and electric motorcycles is prohibited on all natural surface trails. Class 1 electric bicycles and traditional bicycles are permitted on designated natural surface trails, subject to posted speed limits and yielding requirements.
(f) Designated Urban Shared-Use Trails.

All urban paved shared-use trails within the City of Glendora. Class 1-3 electric bicycles, traditional bicycles, electric scooters, electrically motorized boards and similar motorized devices are permitted. All users shall yield to pedestrians and observe any posted speed limits.

SECTION 3. Hours and Operational Restrictions. The City Manager, Chief of Police, or their respective designees may establish reasonable hours, days, and operational restrictions applicable to the designated areas set forth in Section 2 of this Resolution. Such restrictions shall be reflected in posted signage at the designated areas.

SECTION 4. Speed Limits. Pursuant to Section 10.17.056 of the Glendora Municipal Code, the City Manager, Chief of Police, or their respective designees are hereby authorized to establish and post maximum speed limits on the sidewalks, trails, travel corridors, and other areas designated under Section 2 of this Resolution, where such posting is deemed necessary to protect the safety of pedestrians, riders, and other users.

SECTION 5. Signage. The City Manager, or his or her designee, is hereby directed to cause appropriate signage to be installed and maintained at each of the designated areas identified in Section 2 of this Resolution, in conformance with Section

10.17.050 of the Glendora Municipal Code, California Vehicle Code Section 22658(a), and the CA MUTCD, where applicable. The prohibitions and restrictions established by this Resolution shall take effect upon the posting of such signage.

SECTION 6. Enforcement. The prohibitions and restrictions established by this Resolution shall be enforced in accordance with Section 10.17.060 of the Glendora Municipal Code, including the imposition of fines, the impoundment of devices, and the availability of the Diversion Program established under Section 10.17.065 of the Glendora Municipal Code.

SECTION 7. Special Events. The City Manager, or his or her designee, may temporarily suspend the prohibitions and restrictions established by this Resolution to accommodate special events, parades, demonstrations, or other community activities, Resolution CC 2026-____ Page 4 of 5
upon written request by the event organizer and subject to such conditions as the City Manager may impose.

SECTION 8. CEQA Finding. The City Council finds that this Resolution is exempt from CEQA pursuant to CEQA Guidelines Sections 15061(b)(3) and 15301. The City Clerk is directed to file a Notice of Exemption in accordance with CEQA.

SECTION 9. Severability. If any section, subsection, sentence, clause, phrase, or portion of this Resolution is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution.

SECTION 10. The City Clerk shall certify to the passage and adoption of this Resolution and shall enter the same in the Book of Original Resolutions.

SECTION 11. Effective Date. This Resolution shall take effect immediately upon its adoption; provided, however, that the prohibitions and restrictions established under Section 2 shall not be enforceable until signage has been installed in accordance with Section 5 of this Resolution.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Glendora this ___ day of ____________, 2026.

BY: __________________________________

DAVID FREDENDALL
Mayor
APPROVED AS TO FORM:

Aleshire & Wynder, LLP
_______________________

DANNY ALESHIRE
City Attorney
Resolution CC 2026-____ Page 5 of 5

CERTIFICATION
I, Kathleen R. Sessman, City Clerk of the City of Glendora, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Glendora at a regular meeting held on the _____ day of ___________, 2026, by the following vote:

AYES: MEMBERS:

NOES: MEMBERS:

ABSENT: MEMBERS:

ABSTAIN: MEMBERS:

I further certify that said Resolution was published as required by law in a newspaper of general circulation in the City of Glendora, California on the _____ day of ______________, 2026.

Dated:
__________________________________
KATHLEEN R. SESSMAN
City Clerk/Communications Director
INTRODUCTION AND FIRST READING OF AN ORDINANCE AMENDING CHAPTER 10.17 OF

THE GLENDORA MUNICIPAL CODE REGARDING SKATEBOARDING, ROLLER-SKATING,

BICYCLING, ELECTRIC BICYCLES, ELECTRIC SCOOTERS AND OTHER MOTOR ASSISTED

MOBILITY DEVICES

PRESENTED BY POLICE AND PUBLIC WORKS

CITY COUNCIL MEETING
JUNE 23, 2026

CHRIS STABIO, CAPTAIN

VALERIE VELASQUEZ-SANTOYA, ASSISTANT DIRECTOR OF PUBLIC WORKS

BACKGROUND
MAY 26, 2026 CITY COUNCIL MEETING
• Improve pedestrian safety
• Focus on education and rider accountability
• Establish restrictions in high pedestrian activity areas • Differentiate between urban and natural trails
• Develop enforcement and diversion options
CITY COUNCIL DIRECTED PREPARATON OF ORDINANCE & RESOLUTION:
• Increasing e-Bike and Electric Scooter Usage Citywide • Rise in Complaints, Conflicts, and Calls for service
• Concerns from Residents, Schools, Business and the Glendora Village BID • Existing GMC Chapter 10.17 predates modern e-Bikes and Electric Scooters TONIGHT'S ACTION: Introduce Ordinance (1st Reading) &
Adopt Resolution
COUNCIL DIRECTION → PROPOSED ORDINANCE
Council Direction Ordinance Response
Education Diversion Program
Parent Involvement Parent Participation Required
School Coordination School Partnership Provisions
Unsafe Riding Concerns Unsafe Riding Section
High Pedestrian Areas Restricted Areas Resolution
Enforcement Tools Fines and Impound Authority

PROPOSED ORDINANCE HIGHLIGHTS
KEY CHANGES TO GMC 10.17
• Modernized definitions
• E-bike classifications
• Unsafe riding standards
• Nuisance provisions
• Diversion program
• Fine structure
• Impound authority
• ADA exemptions

UPDATED DEFINITIONS
Incorporates current CA Vehicle Code Definitions for E-Bikes, E-Scooters, Electric Motorized Boards and all Scooters.

CLASS 1 – LOW SPEED PEDAL ASSISTED: the motor assists only when pedaling. Maximum speed is 20 mph. Helmet required under age of 18.

CLASS 2 – LOW SPEED THROTTLE ASSISTED: the motor may propel without pedaling. Maximum speed is 20 mph. Helmet required under age of 18.

CLASS 3 – HIGH SPEED PEDAL ASSISTED: the motor assists only when pedaling. Macimum speed is 28 mph. Speedometer required. Minumum afe is 16 and helmet required for all riders.

ALSO DEFINED: Electric Scooters, Electrcially motorized Boards, Electric Peronal Assistive Mobility Devices (EPAMDS) and Motorized or Electric Scooters.

EDUCATION FIRST APPROACH
DIVERSION PROGRAM:
• Safety Education Course
• 1 Hour Classroom Safety Instruction
• 1 Hour Practical Bicycle Safety Course
• Parent Participation For Minors
• Alternative To Monetary Penalties
• Certificate/Permit System
• School Coordination Opportunities
The Bicycle Safety Education Class and Diversion Program (GMC 10.17.065) provides an alternative to monetary fines.

GOAL: IMPROVE LONG TERM RIDER BEHAVIOR AND PROMOTE SAFE OPERATION OF MOBILITY

DEVICES THROUGHOUT THE COMMUNITY

UNSAFE RIDING & RESTRICTED AREAS

UNSAFE RIDING PROHIBITED
GMC 10.17.055
• Unsafe speed
• Wheelies and stunt riding
• Racing
• Swerving through traffic
• Failure to yield to pedestrians
• Improper passenger transport
• Distracted riding
• Modified devices exceeding legal
classifications

RESTRICTED AREAS

BY RESOLUTION
• Glendora Village
• Marketplace
• Diamond Ridge
• School frontages
• Parks & playgrounds
• Natural Trails
• Urban Trails
PROPOSED RESTRICTIONS:
• Dismount And Walk
• High Pedestrian Activity
• Enhanced Safety
• Signage Installed
All images are
placeholders. Click on
image and use “Insert” >
“picture from file” to swap
images as needed

GLENDORA VILLAGE / COMMERCIA
AREAS
SCHOOL FRONTAGES:
• Within 100 feet of all School Frontages
• Walking Pace Requirements
• Additional Restrictions During School Hours

SCHOOLS / PARKS / PLAYGROUNDS
PARKS & PLAYGROUNDS:
• No Riding In Designated Playground Areas
• Class 1 & 2 E-Bikes Permitted on Designated Pathways
at Safe Speeds
TRAILS
Natural Trails Urban Shared-Use Trails
Traditional bicycles permitted Traditional bicycles permitted Class 1 e-bikes permitted Class 1-3 e-bikes permitted
Yield to pedestrians Yield to pedestrians
Class 2 and 3 prohibited Posted speed limits
Designated trails prohibited with signage

ENFORCEMENT

PROGRESSIVE ENFORCEMENT
• 1
st Violation: $50
• 2nd Violation: $100
• 3rd Violation: $200
• Diversion Option Available as an alternative to monetary penalty Violations within a 12 month period
FINE STRUCTURE (GMC 10.17.060):

IMPOUND AUTHORITY:
• Officers may impound unlawfully operated E-Bikes, E-Scooters and Similar Devices.
• Applies to repeat offenders, modified devices, and conduct pressenting signicant public safety concerns.

TONIGHT:
• CEQA Exemption
• Introduce Ordinance
• Adopt Resolution

NEXT STEPS
IMPLEMENTATION:
• Signage
• Education Curriculum
• School Outreach
• Public Awareness Campaign
RECOMMENDATION:

THAT THE CITY COUNCIL:

1. Find and determine that the proposed ordinance is exempt from the California Environmental Quality Act (“CEQA”);

2. Waive full reading, read by title only, and introduce for first reading an ordinance entitled, "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GLENDORA, CALIFORNIA, AMENDING CHAPTER 10.17 OF TITLE 10 OF THE GLENDORA MUNICIPAL CODE REGARDING SKATEBOARDING, ROLLER-SKATING, BICYCLING, ELECTRIC BICYCLES, ELECTRIC SCOOTERS, AND OTHER MOTORASSISTED MOBILITY DEVICES IN CERTAIN DESIGNATED AREAS;"

3. Direct the preparation of a summary ordinance for publication; and

4. Adopt a City Council Resolution entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF GLENDORA, CALIFORNIA, DESIGNATING CERTAIN PUBLIC AREAS AS NO SKATEBOARDING,

ROLLER SKATING, BICYCLING, ELECTRIC BICYCLE, ELECTRIC SCOOTER, OR SIMILAR ACTIVITY AREAS PURSUANT TO CHAPTER 10.17 OF THE GLENDORA MUNICIPAL CODE."

STAFF REPORT
TO: Mayor and Council Members DATE: June 23, 2026
FROM: Human Resources DISTRICT(S): Not Applicable
SUBJECT: Approve Membership in Public Risk Innovation, Solutions, and Management (PRISM) and Authorize Execution of the PRISM Joint Powers Agreement and Related Program Memoranda of Understanding

RECOMMENDATION
That the City Council:

1. Adopt a Resolution approving membership in Public Risk Innovation, Solutions, and Management (PRISM);

2. Approve the PRISM Joint Powers Agreement;

3. Approve the PRISM General Liability Program 2 Memorandum of Understanding;

4. Approve the PRISM Excess Workers’ Compensation Program Memorandum of Understanding; and

5. Authorize the City Manager, or his designee, to execute the PRISM Joint Powers Agreement, Memorandums of Understanding and any ancillary documents necessary to implement the City’s participation in PRISM effective July 1, 2026.

STRATEGIC FOCUS AREAS
Goal 5: Staff + Technology

EXECUTIVE SUMMARY
On March 11, 2025, the City Council approved a Resolution providing notice of intent to withdraw from the Independent Cities Risk Management Authority (ICRMA) effective June 30, 2026. The action preserved the City’s ability to evaluate alternative risk financing and insurance options in response to increasing insurance costs and declining participation within the ICRMA pool.

Over the past year, staff utilized the services of Alliant, and insurance broker, to conduct an extensive review of available public agency insurance pools and risk management organizations. Following evaluation of coverage, financial stability, governance structure, claims administration, and long-term cost considerations, staff recommends that the City join Public Risk Innovation, Solutions, and Management (PRISM), one of California’s largest and most established public agency risk sharing organizations.

PRISM provides excess liability, workers’ compensation, property, cyber liability, crime, and related risk management programs to counties and public agencies throughout California through a Joint Powers Authority structure. The organization was created pursuant to California Government Code Sections 6500 et seq. and provides insurance pooling, purchased insurance, reinsurance, claims administration standards, actuarial oversight, and risk management services for participating agencies.

Staff believes participation in PRISM will provide the City with broader coverage options, enhanced financial strength, greater program stability, and access to one of the largest public entity risk pools in California.

LEGISLATIVE HISTORY / PREVIOUS ACTIONS
The City has been a member of ICRMA since 1986 and was one of the organization’s founding agencies. At one point ICRMA had approximately 35 member cities; however, membership has steadily declined and is expected to be reduced to 12 member cities as of July 1, 2025.

Since 2009, there has been a consistent decline in membership of ICRMA, going from 22 cities down to 12 beginning July 1, 2025. When a member city leaves, the administrative costs do not decrease, they are redistributed among the existing members. Glendora's insurance costs have increased nearly 100% over the last three years as a result of an increase in administrative fees and insurance premiums.

On March 11, 2025, the City Council adopted Resolution No. 25-05 providing notice of intent to withdraw from ICRMA effective June 30, 2026. The withdrawal notice was necessary to preserve the City’s ability to explore alternative insurance and risk management strategies while maintaining the option to remain with ICRMA if conditions warranted.

DISCUSSION
Current Insurance Environment
Public agencies throughout California continue to experience significant challenges in the insurance marketplace.

Catastrophic wildfire losses, severe weather events, increased litigation costs, inflation, and reduced insurer capacity have contributed to substantial premium increases across virtually all lines of coverage.

As noted in the March 2025 staff report, ICRMA membership has declined substantially over the last decade. As member agencies leave the pool, administrative and operational costs are spread among fewer participants, placing additional financial pressure on remaining members. The City’s insurance costs have increased significantly in recent years due to both market conditions and the reduced economies of scale within the existing pool.

Evaluation of PRISM
Staff evaluated multiple public agency insurance alternatives and determined that PRISM offers the strongest combination of coverage, financial capacity, governance, and long-term stability.

PRISM is one of California’s largest public agency risk sharing organizations and operates pursuant to a Joint Powers Agreement among participating counties and public entities. The organization provides pooled risk financing, excess insurance, reinsurance purchasing, claims oversight, actuarial services, and comprehensive risk management resources.

Unlike smaller pools that have experienced declining membership, PRISM serves a broad membership base throughout California, providing enhanced purchasing power, diversified risk sharing, and greater financial resilience.

Coverage Comparison
Staff’s analysis determined that PRISM offers several enhancements over the City’s current program.

Property coverage would increase from $250 million under the current program to approximately $1.3 billion under the PRISM property program. Flood coverage is automatically included under the property program without additional underwriting requirements, and terrorism coverage is included for both certified and non-certified acts.

Additional limits are available for earthquake coverage.

The liability program would maintain the City’s existing $2 million self-insured retention while continuing to provide a $35 million excess liability tower, with the ability to purchase additional limits if desired in the future. PRISM also has the capacity to provide up to $50 million in pooled liability coverage.

Workers’ compensation coverage would increase employer liability limits from $2 million to $5 million while maintaining the City’s existing $1 million self-insured retention.

The PRISM crime program would increase available limits from $10 million to $25 million while reducing the deductible from $25,000 to $2,500.

In addition, PRISM provides established underwriting standards, claims administration standards, actuarial oversight, and program governance through member participation on program committees.

Financial Considerations
Based on preliminary indications, staff anticipates the City’s annual insurance costs under PRISM will be approximately $2.83 million, compared with approximately $2.57 million under the current ICRMA program. Staff anticipated ICRMA insurance costs to escalate to $3+ million over the next year.

While the initial premium may be modestly higher, staff believes the increase is justified by the significant enhancements in property coverage limits, expanded flood and terrorism protection, increased employer liability limits, improved crime coverage, and access to a substantially larger and more financially stable risk pool.

The City will continue to be responsible for previously disclosed ICRMA withdrawal obligations and any applicable exit fees associated with its departure from the organization.

PRISM Membership Documents
To participate in PRISM programs, the City must execute the PRISM Joint Powers Agreement and applicable program Memoranda of Understanding. These documents establish the governance structure, funding mechanisms, claims administration standards, participation requirements, and dispute resolution procedures applicable to participating agencies.

Approval of the attached Resolution authorizes the City’s membership in PRISM and execution of the required membership documents.

FISCAL IMPACT
The estimated annual cost of the recommended PRISM insurance program is approximately $2.83 million for Fiscal Year 2026-27, subject to final underwriting and policy issuance. The recommended program includes expanded property limits, enhanced crime coverage, increased employer liability limits, and broader risk management resources.

Adequate funding will be included in the Fiscal Year 2026-27 Operating Budget. Additionally, the City is still responsible for exit fees for the next three years with ICRMA. Those costs are also accounted for in the Operating Budget.

ENVIRONMENTAL DETERMINATION
This action is not a project under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378 because it involves administrative and organizational activities that will not result in a direct or indirect physical change in the environment.

Prepared By: Marie Ricci, Deputy City Manager
Concurs With: Not Applicable
Reviewed By: Not Applicable
Certified to Availability of Funds: Kyle Johnson, Finance Director/City Treasurer Approved By: Adam Raymond, City Manager
Legal Review: Danny Aleshire, City Attorney
CEQA Review: Not Applicable
Attachments
A_Resolution_to_Join_PRISM.pdf
B_JPA_2020_Final_PRISM.pdf
C_PRISM_GL2_MOU_Final_070119_Full_Document.pdf
D_EWC_MOU_3-6-09.pdf
E_PRISM_Membership.pdf
RESOLUTION CC 2026- ___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GLENDORA,

CALIFORNIA, TO JOIN PUBLIC RISK INNOVATION, SOLUTIONS, AND

MANAGEMENT

THE CITY COUNCIL
City of Glendora, California
WHEREAS, Article 1, Chapter 5, Division 7, Title 1 of the California Government Code (Section 6500 et seq.) permits two or more public agencies by agreement to exercise jointly powers common to the contracting parties; and
WHEREAS, the City of Glendora desires to perform its due diligence by conducting a cost benefit analysis of insurance coverage options on the open market; and, WHEREAS, the City of Glendora desires to join together with the members of the Public Risk Innovation, Solutions, and Management (PRISM) for the purpose of jointly funding and/or establishing excess and other insurance programs as determined; and WHEREAS, PRISM has determined that it is necessary for each member of PRISM to delegate to a person[s] or position[s] authority to act on the member’s behalf in matters relating to the member and PRISM; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GLENDORA, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The City of Glendora is approved to become a member of the Public Risk Innovation, Solutions, and Management, authorizes execution of the Public Risk Innovation, Solutions. and Management Joint Powers Agreement, and except as to actions that must be approved by the City Council, the Adam Raymond, City Manager, Marie Ricci, Deputy City Manager or Rita Wendling, Assistant Director of Human Resources is hereby appointed to act in all matters relating to the member and PRISM.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Glendora this __ day of ________, ____.

BY:

DAVID FREDENDALL
Mayor
APPROVED AS TO FORM:

Aleshire & Wynder, LLP

DANNY ALESHIRE
City Attorney

CERTIFICATION
I, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Glendora at a regular meeting held on the ___ day of ______, _____, by the following vote:

AYES: MEMBERS:

NOES: MEMBERS:

ABSENT: MEMBERS:

ABSTAIN: MEMBERS:

Dated:

KATHLEEN R. SESSMAN
City Clerk/Communications Director
JPA, PRISM Amended: June 30, 2020

Page 1 of 16 ends

Adopted: October 5, 1979
Amended: May 12, 1980
Amended: January 23, 1987
Amended: October 7, 1988
Amended: March 1993
Amended: November 18, 1996
Amended: October 4, 2005
Amended: February 28, 2006
Amended: June 30, 2020

JOINT POWERS AGREEMENT

PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT
This Agreement is executed in the State of California by and among those counties and public entities organized and existing under the Constitution of the State of California, which are parties signatory to this Agreement. Public Risk Innovation, Solutions, and Management (referred to herein as PRISM), formerly known as CSAC Excess Insurance Authority, was formed under the sponsorship of CSAC. California counties, hereinafter called member counties, and public entities, hereinafter called member public entities, (collectively “members”) shall be listed in Appendix A, which shall be attached hereto and made a part hereof.

RECITALS
WHEREAS, Article 1, Chapter 5, Division 7, Title 1 of the California Government Code (Section 6500 et seq.) permits two or more public agencies by agreement to exercise jointly powers common to the contracting parties; and
WHEREAS, Article 16, Section 6 of the California Constitution provides that insurance pooling arrangements under joint exercise of power agreements shall not be considered the giving or lending of credit as prohibited therein; and
WHEREAS, California Government Code Section 990.4 provides that a local public entity may self-insure, purchase insurance through an authorized carrier, or purchase insurance through a surplus line broker, or any combination of these; and
WHEREAS, pursuant to California Government Code Section 990.6, the cost of insurance provided by a local public entity is a proper charge against the local public entity; and WHEREAS, California Government Code Section 990.8 provides that two or more local entities may, by a joint powers agreement, provide insurance for any purpose by any one or more of the methods specified in Government Code Section 990.4 and such pooling of self-insured claims or losses is not considered insurance nor subject to regulation under the Insurance Code; and WHEREAS, the counties and public entities executing this Agreement desire to join together for the purpose of jointly funding and/or establishing excess and other insurance programs as determined; NOW THEREFORE, the parties agree as follows:

ARTICLE 1

DEFINITIONS
“CSAC" shall mean the County Supervisors Association of California, dba California State Association of Counties.
"Board of Directors" or "Board" shall mean the governing body of PRISM. "Claim" shall mean a claim made against a member arising out of an occurrence, which is covered by an excess or primary insurance program of PRISM in which the member is a participant.

JPA, PRISM Amended: June 30, 2020

Page 2 of 16 ends

"Executive Committee" shall mean the Executive Committee of the Board of Directors of PRISM.
"Fiscal year" shall mean that period of twelve months which is established by the Board of Directors as the fiscal year of PRISM.
"Government Code" shall mean the California Government Code. “Insurance program” or “program” shall mean a program which has been designated as a major program of PRISM under which participating members are protected against designated losses, either through joint purchase of primary or excess insurance, pooling of self-insured claims or losses, purchased insurance or any other combination as determined by the Board of Directors. The Board of Directors, the Executive Committee, or a program’s governing committee may determine applicable criteria for determining eligibility in any insurance program, as well as establishing program policies and procedures.
"Joint powers law" shall mean Article 1, Chapter 5, Division 7, Title 1 (commencing with Section 6500) of the Government Code.
"Loss" shall mean a liability or potential liability of a member, including litigation expenses, attorneys' fees and other costs, which is covered by an insurance program of PRISM in which the member is a participant.
"Member county" shall mean any county in the State of California which has executed this Agreement and become a member of PRISM. "Member County" shall also include those entities or other bodies set forth in Article 3 (c).
“Member Public Entity” shall mean any California public entity, which is not a California county, which has executed this Agreement, and become a member of PRISM, “Member Public Entity” shall also include those entities or other bodies set forth in Article 3(c). “Miscellaneous Program” is an insurance program of PRISM that does not involve pooling of self-insured claims or losses and may be made available to members as well as non-member public entities that are not a party to this Agreement.
"Occurrence" shall mean an event which is more fully defined in the memorandums of coverage and/or policies of an insurance program in which the participating county or participating public entity is a member.
"Participating county" shall mean any member county which has entered into a program offered by PRISM pursuant to Article 14 of this Agreement and has not withdrawn or been canceled therefrom pursuant to Articles 20 or 21.
“Participating public entity” shall mean any member public entity which has entered into a program offered by PRISM pursuant to Article 14 of this Agreement and has not withdrawn or been canceled therefrom pursuant to Articles 20 or 21.
"Self-insured retention" shall mean that portion of a loss resulting from an occurrence experienced by a member, which is retained as a liability or potential liability of the member and is not subject to payment by PRISM.
"Reinsurance" shall mean insurance purchased by PRISM as part of an insurance program to cover that portion of any loss, which exceeds the joint funding capacity of that program.

JPA, PRISM Amended: June 30, 2020

Page 3 of 16 ends

ARTICLE 2

PURPOSES
This Agreement is entered into by the member counties and member public entities in order to jointly develop and fund insurance programs as determined. Such programs may include, but are not limited to, the creation of joint insurance funds, including primary and excess insurance funds, the pooling of self-insured claims and losses, purchased insurance, including reinsurance, and the provision of necessary administrative services. Such administrative services may include, but shall not be limited to, risk management consulting, loss prevention and control, centralized loss reporting, actuarial consulting, claims adjusting, and legal defense services.

ARTICLE 3

PARTIES TO AGREEMENT
(a) There shall be two classes of membership of the parties pursuant to this Agreement consisting of one class designated as Member Counties and another class designated as Member Public Entities.
(b) Each member county and member public entity, as a party to this Agreement, certifies that it intends to and does contract with all other members as parties to this Agreement and, with such other members as may later be added as parties to this Agreement pursuant to Article 19 as to all programs of which it is a participating member. Each member also certifies that the removal of any party from this Agreement, pursuant to Articles 20 or 21, shall not affect this Agreement or the member’s obligations hereunder. (c) A member for purposes of providing insurance coverage under any program of PRISM, may contract on behalf of, and shall be deemed to include:

Any public entity as defined in Government Code § 811.2 which the member requests to be added and from the time that such request is approved by the Executive Committee of PRISM.

Any nonprofit entity, including a nonprofit public benefit corporation formed pursuant to Corporations Code §§ 5111, 5120 and, 5065, which the member requests to be added and from the time that such request is approved by the Executive Committee. (d) Any public entity or nonprofit so added shall be subject to and included under the member’s SIR or deductible, and when so added, may be subject to such other terms and conditions as determined by the Executive Committee. (e) Such public entity or nonprofit shall not be considered a separate party to this Agreement. Any public entity or nonprofit so added, shall not affect the member’s representation on the Board of Directors and shall be considered part of and represented by the member for all purposes under this Agreement.
(f) The Executive Committee shall establish guidelines for approval of any public entity or nonprofit so added in accordance with Article 3(c) and (d). (g) Should any conflict arise between the provisions of this Article and any applicable Memorandum of Coverage or other document evidencing coverage, such Memorandum of Coverage or other document evidencing coverage shall prevail.

ARTICLE 4
TERM
This Agreement shall continue in effect until terminated as provided herein.

JPA, PRISM Amended: June 30, 2020

Page 4 of 16 ends

ARTICLE 5

CREATION OF PRISM
Pursuant to the joint powers law, there is hereby created a public entity separate and apart from the parties hereto, to be known as Public Risk Innovation, Solutions, and Management (“PRISM”), with such powers as are hereinafter set forth.

ARTICLE 6

POWERS OF PRISM
PRISM shall have all of the powers common to General Law counties in California, such as Alpine County and all additional powers set forth in the joint powers law, and is hereby authorized to do all acts necessary for the exercise of said powers. Such powers include, but are not limited to, the following:
(a) To make and enter into contracts.
(b) To incur debts, liabilities, and obligations.
(c) To acquire, hold, or dispose of property, contributions and donations of property, funds, services, and other forms of assistance from persons, firms, corporations, and government entities.
(d) To sue and be sued in its own name, and to settle any claim against it. (e) To receive and use contributions and advances from members as provided in Government Code Section 6504, including contributions or advances of personnel, equipment, or property.
(f) To invest any money in its treasury that is not required for its immediate necessities, pursuant to Government Code Section 6509.5.
(g) To allow non-member public entities and non-member counties to participate in Miscellaneous Programs and for risk management services to be provided to nonmember counties and non-member public entities including out-of-state participants in a PRISM program.
(h) To carry out all provisions of this Agreement.

Said powers shall be exercised pursuant to the terms hereof and in the manner provided by law.

ARTICLE 7

BOARD OF DIRECTORS
PRISM shall be governed by the Board of Directors, which shall be composed as follows:
(a) One director from each member county, appointed by the member county board of supervisors and serving at the pleasure of that body. Each member county board of supervisors shall also appoint an alternate director who shall have the authority to attend, participate in and vote at any meeting of the Board of Directors when the director is absent. A director or alternate director shall be a county supervisor, other county official, or staff person of the member county, and upon termination of office or employment with the county, shall automatically terminate membership or alternate membership on the Board of Directors.
(b) Ten directors consisting of seven directors and three alternate directors chosen in the manner specified in the Bylaws from those participating as public entity members. A director or alternate public entity director shall be an official, or staff person of the public JPA, PRISM Amended: June 30, 2020

Page 5 of 16 ends

entity member, and upon termination of office or employment with the public entity, shall automatically terminate membership or alternate membership on the Board of Directors. (c) Member county directors shall consist of a minimum of 80% of the eligible voting members on the Board of Directors. The public entity member directors shall be reduced accordingly to ensure at least 80% of the Board of Directors consists of county director members (By way of example, if the number of county members is reduced from the current 54 by member withdrawals to a level of 28, then county members would be at the 80% level, 28/35. If the county members go to 27, then the public entity members would lose one seat and would only have 6 votes).

Any vacancy in a county director or alternate director position shall be filled by the appointing county's board of supervisors, subject to the Provisions of this Article. Any vacancy in a public entity director position shall be filled by vote of the public entity members.

A majority of the membership of the Board of Directors shall constitute a quorum for the transaction of business. Each member of the Board of Directors shall have one vote.

Except as otherwise provided in this Agreement or any other duly executed agreement of the members, all actions of the Board of Directors shall require the affirmative vote of a majority of the members; provided, that any action which is restricted in effect to one of PRISM's insurance programs, shall require the affirmative vote of a majority of those Board of Directors members who represent counties and public entities participating in that program. For purposes of an insurance program vote, to the extent there are public entity members participating in a program, the public entity Board of Directors members as a whole shall have a minimum of one vote. The public entity Board of Directors members may in no event cast more votes than would constitute 20% of the number of total county members in that program (subject to the one vote minimum). Should the number of public entity Board of Directors votes authorized herein be less than the number of public entity Board of Directors members at a duly noticed meeting, the public entity Board of Directors members shall decide among themselves, which Board of Directors member shall vote. Should they be unable to decide, the President of PRISM shall determine which director(s) shall vote.

ARTICLE 8

POWERS OF THE BOARD OF DIRECTORS
The Board of Directors shall have the following powers and functions:
(a) The Board of Directors shall exercise all powers and conduct all business of PRISM, either directly or by delegation to other bodies or persons unless otherwise prohibited by this Agreement, or any other duly executed agreement of the members or by law. (b) The Board of Directors may adopt such resolutions as deemed necessary in the exercise of those powers and duties set forth herein.
(c) The Board of Directors shall form an Executive Committee, as provided in Article 11.

The Board of Directors may delegate to the Executive Committee and the Executive Committee may discharge any powers or duties of the Board of Directors except adoption of PRISM's annual budget. The powers and duties so delegated shall be specified in resolutions adopted by the Board.
(d) The Board of Directors may form, as provided in Article 12, such other committees as it deems appropriate to conduct the business of PRISM. The membership of any such other committee may consist in whole or in part of persons who are not members of the Board of Directors.

JPA, PRISM Amended: June 30, 2020

Page 6 of 16 ends

(e) The Board of Directors shall elect the officers of PRISM and shall appoint or employ necessary staff in accordance with Article 13.
(f) The Board of Directors shall cause to be prepared, and shall review, modify as necessary, and adopt the annual operating budget of PRISM. Adoption of the budget may not be delegated.
(g) The Board of Directors shall develop, or cause to be developed, and shall review, modify as necessary, and adopt each insurance program of PRISM, including all provisions for reinsurance and administrative services necessary to carry out such program. (h) The Board of Directors, directly or through the Executive Committee, shall provide for necessary services to PRISM and to members, by contract or otherwise, which may include, but shall not be limited to, risk management consulting, loss prevention and control, centralized loss reporting, actuarial consulting, claims adjusting, and legal services.
(i) The Board of Directors shall provide general supervision and policy direction to the Chief Executive Officer.
(j) The Board of Directors shall receive and act upon reports of the committees and the Chief Executive Officer.
(k) The Board of Directors shall act upon each claim involving liability of PRISM, directly or by delegation of authority to the Executive Committee or other committee, body or person, provided, that the Board of Directors shall establish monetary limits upon any delegation of claims settlement authority, beyond which a proposed settlement must be referred to the Board of Directors for approval.
(l) The Board of Directors may require that PRISM review, audit, report upon, and make recommendations with regard to the safety or claims administration functions of any member, insofar as those functions affect the liability or potential liability of PRISM. The Board of Directors may forward any or all such recommendations to the member with a request for compliance and a statement of potential consequences for noncompliance. (m) The Board of Directors shall receive, review and act upon periodic reports and audits of the funds of PRISM, as required under Articles 15 and 16 of this Agreement. (n) The Board of Directors may, upon consultation with a casualty actuary, declare that any funds established for any program has a surplus of funds and determine a formula to return such surplus to the participating counties and participating public entities, which have contributed, to such fund.
(o) The Board of Directors shall have such other powers and duties as are reasonably necessary to carry out the purposes of PRISM.

ARTICLE 9

MEETINGS OF THE BOARD OF DIRECTORS
(a) The Board of Directors shall hold at least one regular meeting each year and shall provide for such other regular meetings and for such special meetings as it deems necessary.
(b) The Chief Executive Officer of PRISM shall provide for the keeping of minutes of regular and special meetings of the Board of Directors, and shall provide a copy of the minutes to each member of the Board of Directors at the next scheduled meeting. (c) All meetings of the Board of Directors, the Executive Committee and such committees as established by the Board of Directors pursuant to Article 12 herein, shall be called, JPA, PRISM Amended: June 30, 2020

Page 7 of 16 ends

noticed, held and conducted in accordance with the provisions of Government Code Section 54950 et seq.

ARTICLE 10

OFFICERS
The Board of Directors shall elect from its membership a President and Vice President of the Board, to serve for one-year terms.

The President, or in his or her absence, the Vice President, shall preside at and conduct all meetings of the Board of Directors and shall chair the Executive Committee.

ARTICLE 11

EXECUTIVE COMMITTEE
The Board of Directors shall establish an Executive Committee of the Board of Directors, which shall consist of eleven members: the President and Vice President of the Board of Directors, and nine members elected by the Board of Directors from its membership.

The terms of office of the nine non-officer members shall be as provided in the Bylaws of PRISM.

The Executive Committee shall conduct the business of PRISM between meetings of the Board of Directors, exercising all those powers as provided for in Article 8, or as otherwise delegated to it by the Board.

ARTICLE 12

COMMITTEES
The Board of Directors may establish committees, as it deems appropriate to conduct the business of PRISM. Members of the committees shall be appointed by the Board of Directors, to serve two year terms, subject to reappointment by the Board of Directors. The members of each committee shall annually select one of their members to chair the Committee.

Each committee shall be composed of at least five members and shall have those duties as determined by the Board of Directors, or as otherwise set forth in the Bylaws.

Each committee shall meet on the call of its chair, and shall report to the Executive Committee and the Board of Directors as directed by the Board of Directors.

ARTICLE 13
STAFF
(a) Principal Staff. The Chief Executive Officer shall be appointed by and serve at the pleasure of the Board of Directors. The Chief Executive Officer shall serve as the Board Secretary and administer the business and activities of PRISM, subject to the general supervision and policy direction of the Board of Directors and Executive Committee; shall be responsible for all minutes, notices and records of PRISM and shall perform such other duties as are assigned by the Board and Executive Committee. (b) Treasurer and Auditor. Pursuant to Government Code Section 6505.6, the Chief Financial Officer shall serve as the Treasurer/Auditor. The duties of the Treasurer are set forth in Article 16 of this Agreement. The Chief Financial Officer shall draw warrants to pay demands against PRISM. The Chief Financial Officer shall comply with the provisions of Government Code Section 6505.5 (a-d) and shall be appointed by and serve at the pleasure of the Chief Executive Officer.
(c) Other Staff. The Board of Directors, Executive Committee or Chief Executive Officer shall provide for the appointment of such other staff as may be necessary for the administration of PRISM.

JPA, PRISM Amended: June 30, 2020

Page 8 of 16 ends

ARTICLE 14

DEVELOPMENT, FUNDING AND IMPLEMENTATION

OF INSURANCE PROGRAMS
(a) Program Coverage. Insurance programs of PRISM may provide coverage, including excess insurance coverage for:
(1) Workers' compensation;
(2) Comprehensive liability, including but not limited to general, personal injury, contractual, public officials errors and omissions, and incidental malpractice liability;
(3) Comprehensive automobile liability;
(4) Hospital malpractice liability;
(5) Property and related programs;
and may provide any other coverages authorized by the Board of Directors. The Board of Directors shall determine, for each such program, a minimum number of participants required for program implementation and may develop specific program coverages requiring detailed agreements for implementation of the above programs.
(b) Program and PRISM Funding. The members developing or participating in an insurance program shall fund all costs of that program, including administrative costs, as hereinafter provided. Costs of staffing and supporting PRISM, hereinafter called PRISM general expenses, shall be equitably allocated among the various programs by the Board of Directors, and shall be funded by the members developing or participating in such programs in accordance with such allocations, as hereinafter provided. In addition, the Board of Directors may, in its discretion, allocate a share of such PRISM general expense to those members, which are not developing or participating in any program, and require those counties and public entities to fund such share through a prescribed charge.
(1) Annual Premium. Except as provided in (2) below, all post-development costs of an insurance program shall be funded by annual premiums charged to the members participating in the program each policy year, and by interest earnings on the funds so accumulated. Such premiums shall be determined by the Board of Directors or the program’s governing committee upon the basis of a cost allocation plan and rating formula developed by PRISM with the assistance of a casualty actuary, risk management consultant, or other qualified person. The premium for each participating member shall include that participant’s share of expected program losses including a margin for contingencies as determined by the Board of Directors, program reinsurance costs, and program administrative costs for the year, plus that participant’s share of PRISM general expense allocated to the program by the Board of Directors.
(2) Premium Surcharge
(i) If PRISM experiences an unusually large number of losses under a program during a policy year, such that notwithstanding reinsurance coverage for large individual losses, the joint insurance funds for the program may be exhausted before the next annual premiums are due, the Board of Directors or the program’s governing committee may, upon consultation with a casualty actuary, impose premium surcharges on all participating members; or
JPA, PRISM Amended: June 30, 2020

Page 9 of 16 ends

(ii) If it is determined by the Board of Directors or the program’s governing committee, upon consultation with a casualty actuary, that the joint insurance funds for a program are insufficient to pay losses, fund known estimated losses, and fund estimated losses, which have been incurred but not reported, the Board of Directors or the program’s governing committee may impose a surcharge on all participating members. (iii) Premium surcharges imposed pursuant to (i) and/or (ii) above shall be in an amount which will assure adequate funds for the program to be actuarially sound; provided that the surcharge to any participating member shall not exceed an amount equal to three (3) times the member’s annual premium for that year, unless otherwise determined by the Board of Directors or the program’s governing committee.

Provided, however, that no premium surcharge in excess of three times the member’s annual premium for that year may be assessed unless, ninety days prior to the Board of Directors taking action to determine the amount of the surcharge, PRISM notifies the governing body of each participating member in writing of its recommendations regarding its intent to assess a premium surcharge and the amount recommended to be assessed each member. PRISM shall, concurrently with the written notification, provide each participating member with a copy of the actuarial study upon which the recommended premium surcharge is based.
(iv) A member which is no longer a participating member at the time the premium surcharge is assessed, but which was a participating member during the policy year(s) for which the premium surcharge was assessed, shall pay such premium surcharges as it would have otherwise been assessed in accordance with the provisions of (i), (ii), and (iii) above.
(c) Program Implementation and Effective Date. Upon establishment of an insurance program by the Board of Directors, PRISM shall determine the manner of program implementation and shall give written notice to all members of such program, which shall include, but not be limited to: program participation levels, coverages and terms of coverage of the program, estimates of first year premium charges, effective date of the program (or estimated effective date) and such other program provisions as deemed appropriate.
(d) Late Entry Into Program. A member which does not elect to enter an insurance program upon its implementation, pursuant to (c) above, or a county or public entity which becomes a party to this Agreement following implementation of the program, may petition the Board of Directors for late entry into the program. Such request may be granted upon a majority vote of the Board of Directors members, plus a majority vote of those board members who represent participants in the program. Alternatively, a county or public entity may petition the Executive Committee for late entry into the program, or a program committee, when authorized by an MOU governing that specific program, may approve late entry into that program. Such request may be granted upon a majority vote of the Executive Committee or program committee.
(e) Reentry Into A Program. Except as otherwise provided in a Program Memorandum of Understanding, any county or public entity that is a member of an insurance program of PRISM who withdraws or is cancelled from an insurance program under Articles 21 and 22, may not reenter such insurance program for a period of three years from the effective date of withdrawal or cancellation.

JPA, PRISM Amended: June 30, 2020

Page 10 of 16 ends

ARTICLE 15

ACCOUNTS AND RECORDS
(a) Annual Budget. PRISM shall annually adopt an operating budget pursuant to Article 8 of this Agreement, which shall include a separate budget for each insurance program under development or adopted and implemented by PRISM.
(b) Funds and Accounts. The Auditor of PRISM shall establish and maintain such funds and accounts as may be required by good accounting practices and by the Board of Directors. Separate accounts shall be established and maintained for each insurance program under development or adopted and implemented by PRISM. Books and records of PRISM in the hands of the Auditor shall be open to inspection at all reasonable times by authorized representatives of members.

PRISM shall adhere to the standard of strict accountability for funds set forth in Government Code Section 6505.
(c) Auditor's Report. The Auditor, within one hundred and eighty (180) days after the close of each fiscal year, shall give a complete written report of all financial activities for such fiscal year to the Board and to each member.
(d) Annual Audit. Pursuant to Government Code Section 6505, PRISM shall either make or contract with a certified public accountant to make an annual fiscal year audit of all accounts and records of PRISM, conforming in all respects with the requirements of that section. A report of the audit shall be filed as a public record with each of the members and also with the county auditor of the county where the home office of PRISM is located and shall be sent to any public agency or person in California that submits a written request to PRISM. The report shall be filed within six months of the end of the fiscal year or years under examination. Costs of the audit shall be considered a general expense of PRISM.

ARTICLE 16

RESPONSIBILITIES FOR FUNDS AND PROPERTY
(a) The Treasurer shall have the custody of and disburse PRISM's funds. He or she may delegate disbursing authority to such persons as may be authorized by the Board of Directors to perform that function, subject to the requirements of (b) below. (b) Pursuant to Government Code Section 6505.6, the Treasurer shall:
(1) Receive and acknowledge receipt for all funds of PRISM and place them in the treasury of the Treasurer to the credit of PRISM.
(2) Be responsible upon his or her official bond for the safekeeping and disbursements of all PRISM funds so held by him or her. (3) Pay any sums due from PRISM, as approved for payment by the Board of Directors or by any body or person to whom the Board of Directors has delegated approval authority, making such payments from PRISM funds upon warrants drawn by the Auditor.
(c) Pursuant to Government Code Section 6505.1, the Chief Executive Officer, the Treasurer, and such other persons as the Board of Directors may designate shall have charge of, handle, and have access to the property of PRISM. (d) PRISM shall secure and pay for a fidelity bond or bonds, in an amount or amounts and in the form specified by the Board of Directors, covering all officers and staff of PRISM, and all officers and staff who are authorized to have charge of, handle, and have access to property of PRISM.

JPA, PRISM Amended: June 30, 2020

Page 11 of 16 ends

ARTICLE 17

RESPONSIBILITIES OF MEMBERS
Members shall have the following responsibilities under this Agreement. (a) The board of supervisors of each member county shall appoint a representative and one alternate representative to the Board of Directors, pursuant to Article 7. (b) Each member shall appoint an officer or employee of the member to be responsible for the risk management function for that member and to serve as a liaison between the member and PRISM for all matters relating to risk management. (c) Each member shall maintain an active risk control program, and shall consider and act upon all recommendations of PRISM concerning the reduction of unsafe practices. (d) Each member shall maintain its own claims and loss records in each category of liability covered by an insurance program of PRISM in which the member is a participant, and shall provide copies of such records to PRISM as directed by the Board of Directors or Executive Committee, or to such other committee as directed by the Board of Directors or Executive Committee.
(e) Each member shall pay premiums and premium surcharges due to PRISM as required under Article 14. Penalties for late payment of such premiums and/or premium surcharges shall be as determined and assessed by the Board of Directors. After withdrawal, cancellation, or termination action under Articles 20, 21, or 23, each member shall pay promptly to PRISM any additional premiums due, as determined and assessed by the Board of Directors under Articles 22 or 23. Any costs incurred by PRISM associated with the collection of such premiums or other charges, shall be recoverable by PRISM.
(f) Each member shall provide PRISM such other information or assistance as may be necessary for PRISM to develop and implement insurance programs under this Agreement.
(g) Each member shall cooperate with and assist PRISM, and any insurer of PRISM, in all matters relating to this Agreement, and shall comply with all Bylaws, and other rules by the Board of Directors.
(h) Each member shall have such other responsibilities as are provided elsewhere in this Agreement, and as are established by the Board of Directors in order to carry out the purposes of this Agreement.

ARTICLE 18

ADMINISTRATION OF CLAIMS
(a) Subject to subparagraph (e), each member shall be responsible for the investigation, settlement or defense, and appeal of any claim made, suit brought, or proceeding instituted against the member arising out of a loss.
(b) PRISM may develop standards for the administration of claims for each insurance program of PRISM so as to permit oversight of the administration of claims by the members.
(c) Each participating member shall give PRISM timely written notice of claims in accordance with the provisions of the Bylaws and the applicable program Memorandum of Coverage.

JPA, PRISM Amended: June 30, 2020

Page 12 of 16 ends

(d) A member shall not enter into any settlement involving liability of PRISM without the advance written consent of PRISM.
(e) PRISM, at its own election and expense, shall have the right to participate with a member in the settlement, defense, or appeal of any claim, suit or proceeding, which, in the judgment of PRISM, may involve liability of PRISM.

ARTICLE 19

NEW MEMBERS
Any California public entity may become a party to this Agreement and participate in any insurance program in which it is not presently participating upon approval of the Board of Directors, by a majority vote of the members, or by majority vote of the Executive Committee.

ARTICLE 20

WITHDRAWAL
(a) A member may withdraw as a party to this Agreement upon thirty (30) days advance written notice to PRISM if it has never become a participant in any insurance program pursuant to Article 14, or if it has previously withdrawn from all insurance programs in which it was a participant.
(b) After becoming a participant in an insurance program, a member may withdraw from that program only at the end of a policy year for the program, and only if it gives PRISM at least sixty (60) days advance written notice of such action.

ARTICLE 21

CANCELLATION
(a) Notwithstanding the provisions of Article 20, the Board of Directors may:
(1) Cancel any member from this Agreement and membership in PRISM, on a majority vote of the Board of Directors members. Such action shall have the effect of canceling the member’s participation in all insurance programs of PRISM as of the date that all membership is canceled.
(2) Cancel any member’s participation in an insurance program of PRISM, without canceling the member’s membership in PRISM or participation in other programs, on a vote of two-thirds of the Board of Directors members present and voting who represent participants in the program.

The Board of Directors shall give sixty (60) days advance written notice of the effective date of any cancellation under the foregoing provisions. Upon such effective date, the member shall be treated the same as if it had voluntarily withdrawn from this Agreement, or from the insurance program, as the case may be.
(b) Except as otherwise provided in a program Memorandum of Understanding, a member that does not enter one or more of the insurance programs developed and implemented by PRISM within the member’s first year as a member of PRISM shall be considered to have withdrawn as a party to this Agreement at the end of such period, and its membership in PRISM shall be automatically canceled as of that time, without action of the Board of Directors.
(c) A member which withdraws from all insurance programs of PRISM in which it was a participant and does not enter any program for a period of six (6) months thereafter shall be considered to have withdrawn as a party to the Agreement at the end of such period, and its membership in PRISM shall be automatically canceled as of that time, without action of the Board of Directors.

JPA, PRISM Amended: June 30, 2020

Page 13 of 16 ends

ARTICLE 22

EFFECT OF WITHDRAWAL OR CANCELLATION
(a) If a member’s participation in an insurance program of PRISM is canceled under Article 21, with or without cancellation of membership in PRISM, and such cancellation is effective before the end of the policy year for that program, PRISM shall promptly determine and return to that member the amount of any unearned premium payment from the member for the policy year, such amount to be computed on a pro-rata basis from the effective date of cancellation.
(b) Except as provided in (a) above or as otherwise provided in a program Memorandum of Understanding, a member which withdraws or is canceled from this Agreement and membership in PRISM, or from any program of PRISM, shall not be entitled to the return of any premium or other payment to PRISM, or of any property contributed to PRISM.

However, in the event of termination of this Agreement, such member may share in the distribution of assets of PRISM to the extent provided in Article 23 provided; however, that any withdrawn or canceled member, which has been assessed a premium surcharge pursuant to Article 14 (b) (3) (ii) shall be entitled to return of said member’s unused surcharge, plus interest accrued thereon, at such time as the Board of Directors declares that a surplus exists in any insurance fund for which a premium surcharge was assessed. (c) Except as provided in (d) below, a member shall pay any premium charges, which the Board of Directors determines are due from the member for losses and costs incurred during the entire coverage year in which the member was a participant in such program regardless of the date of entry into such program. Such charges may include any deficiency in a premium previously paid by the member, as determined by audit under Article 14 (b) (2); any premium surcharge assessed to the member under Article 14 (b) (3); and any additional amount of premium, which the Board of Directors determines to be due from the member upon final disposition of all claims arising from losses under the program during the entire coverage year in which the member was a participant regardless of date of entry into such program. Any such premium charges shall be payable by the member in accordance with PRISM's invoice and payment policy. (d) Those members that have withdrawn or been canceled pursuant to Articles 20 and 21 from any program of PRISM during a coverage year shall pay any premium charges which the Board of Directors determines are due from the members for losses and costs which were incurred during the member’s participation in any program.

ARTICLE 23

TERMINATION AND DISTRIBUTION OF ASSETS
(a) A three-fourths vote of the total voting membership of PRISM, consisting of member counties, acting through their boards of supervisors, and the voting Board of Directors members from the member public entities, is required to terminate this Agreement; provided; however, that this Agreement and PRISM shall continue to exist after such election for the purpose of disposing of all claims, distributing all assets, and performing all other functions necessary to conclude the affairs of PRISM. (b) Upon termination of this Agreement, all assets of PRISM in each insurance program shall be distributed among those members which participated in that program in proportion to their cash contributions, including premiums paid and property contributed (at market value when contributed). The Board of Directors shall determine such distribution within six (6) months after disposal of the last pending claim or other liability covered by the program.
(c) Following termination of this Agreement, any member which was a participant in an insurance program of PRISM shall pay any additional amount of premium, determined by the Board of Directors in accordance with a loss allocation formula, which may be JPA, PRISM Amended: June 30, 2020

Page 14 of 16 ends

necessary to enable final disposition of all claims arising from losses under that program during the entire coverage year in which the member was a participant regardless of the date of entry into such program.

ARTICLE 24

LIABILITY OF BOARD OF DIRECTORS, OFFICERS, COMMITTEE MEMBERS

AND LEGAL ADVISORS
The members of the Board of Directors, Officers, committee members and legal advisors to any Board of Directors or committees of PRISM shall use ordinary care and reasonable diligence in the exercise of their powers and in the performance of their duties pursuant to this Agreement. They shall not be liable for any mistake of judgment or any other action made, taken or omitted by them in good faith, nor for any action taken or omitted by any agent, employee or independent contractor selected with reasonable care, nor for loss incurred through investment of PRISM funds, or failure to invest.

No Director, Officer, committee member, or legal advisor to any Board of Directors or committee shall be responsible for any action taken or omitted by any other Director, Officer, committee member, or legal advisor to any committee. No Director, Officer, committee member or legal advisor to any committee shall be required to give a bond or other security to guarantee the faithful performance of their duties pursuant to this Agreement.

The funds of PRISM shall be used to defend, indemnify and hold harmless PRISM and any Director, Officer, committee member or legal advisor to any committee for their actions taken within the scope of the authority of PRISM. Nothing herein shall limit the right of PRISM to purchase insurance to provide such coverage, as is hereinabove set forth.

ARTICLE 25
BYLAWS
The Board of Directors may adopt Bylaws consistent with this Agreement, which shall provide for the administration and management of PRISM.

ARTICLE 26

NOTICES
PRISM shall address notices, billings and other communications to a member as directed by the member. Each member shall provide PRISM with the address to which communications are to be sent.

Members shall address notices and other communications to PRISM to the Chief Executive Officer of PRISM, at the office address of PRISM as set forth in the Bylaws.

ARTICLE 27

AMENDMENT
A two-thirds vote of the total voting membership of PRISM, consisting of member counties, acting through their boards of supervisors, and the voting Board of Directors members from member public entities, is required to amend this Agreement. However, the Executive Committee is authorized to make non-substantive, clerical amendments to the Agreement and does not need to obtain approval from the Board of Directors to make such amendments.

ARTICLE 28

EFFECTIVE DATE OF AMENDMENTS
Any amendment of this Agreement shall become effective upon the date specified by the Board of Directors and upon approval of any Amended Agreement as required in Article 27. Approval of any amendment by the voting boards of supervisors and public entity board members must take place no later than 30 days from the effective date specified by the Board of Directors.

JPA, PRISM Amended: June 30, 2020

Page 15 of 16 ends

ARTICLE 29

PROHIBITION AGAINST ASSIGNMENT
No member may assign any right, claim or interest it may have under this Agreement, and no creditor, assignee or third party beneficiary of any member shall have any right, claim or title to any part, share, interest, fund, premium or asset of PRISM.

ARTICLE 30

AGREEMENT COMPLETE
This Agreement constitutes the full and complete Agreement of the parties.

ARTICLE 31

DISPUTE RESOLUTION
When a dispute arises between PRISM and a member, the following procedures are to be followed:
(a) Request for Reconsideration. The member will make a written request to PRISM for the appropriate Committee to reconsider their position, citing the arguments in favor of the member and any applicable case law that applies. The member can also, request a personal presentation to that Committee, if it so desires. (b) Committee Appeal. The committee responsible for the program or having jurisdiction over the decision in question will review the matter and reconsider PRISM’s position.

This committee appeal process is an opportunity for both sides to discuss and substantiate their positions based upon legal arguments and the most complete information available. If the member requesting reconsideration is represented on the committee having jurisdiction, that committee member shall be deemed to have a conflict and shall be excluded from any vote.
(c) Executive Committee Appeal. If the member is not satisfied with the outcome of the committee appeal, the matter will be brought to the Executive Committee for reconsideration upon request of the member. If the member requesting reconsideration is represented on the Executive Committee, that Executive Committee member shall be deemed to have a conflict and shall be excluded from any vote. (d) Arbitration. If the member is not satisfied with the outcome of the Executive Committee appeal, the next step in the appeal process is arbitration. The arbitration, whether binding or non-binding, is to be mutually agreed upon by the parties. The matter will be submitted to a mutually agreed arbitrator or panel of arbitrators for a determination. If Binding Arbitration is selected, then the decision of the arbitrator is final. Both sides agree to abide by the decision of the arbitrator. The cost of arbitration will be shared equally by the involved member and PRISM.
(e) Litigation. If, after following the dispute resolution procedure paragraphs a-d, either party is not satisfied with the outcome of the non-binding arbitration process, either party may consider litigation as a possible remedy to the dispute.

ARTICLE 32

FILING WITH SECRETARY OF STATE
The Chief Executive Officer of PRISM shall file a notice of this Agreement with the office of California Secretary of State within 30 days of its effective date, as required by Government Code Section 6503.5 and within 70 days of its effective date as required by Government Code Section 53051.

JPA, PRISM Amended: June 30, 2020

Page 16 of 16 ends

IN WITNESS WHEREOF, the undersigned party hereto has executed this Agreement on the date indicated below.

DATE:____________________ MEMBER: ___________________________________ (Print Name of Member)
BY: ________________________________________
(Authorized signature of Member)
Seal:

Adopted: December 11, 1990
Effective: February 15, 1991
Amended: March 11, 2004
Amended: October 5, 2006
Amended: December 8, 2011
Amended: July 1, 2019

Page 1 of 5 ends

MEMORANDUM OF UNDERSTANDING
GENERAL LIABILITY PROGRAM 2
This Memorandum of Understanding is entered into by and between Public Risk Innovation, Solutions, and Management (hereinafter referred to as PRISM) and the participating members of the General Liability Program 2 (hereinafter referred to as “GL2”), consisting of counties and other public entities (hereinafter “Public Entity”) who are signatories to this Memorandum.

1. JOINT POWERS AGREEMENT. Except as otherwise provided herein, all terms used herein shall be as defined in Article 1 of the Joint Powers Agreement Creating PRISM (hereinafter referred to as "Agreement"). Provisions of any applicable coverage agreement and all other provisions of the Agreement not in conflict with this Memorandum shall be applicable.

2. PROGRAM COMMITTEE.

A. There is hereby established a GL2 Program Committee (hereinafter referred to as "GL2 Committee" or “Committee”) and, except as otherwise provided herein, said Committee shall have full authority to determine all matters affecting the participating members.

B. The GL2 Committee shall consist of all GL2 member counties of PRISM, with the committee member being that person designated as the county’s Board member for PRISM. In the event a county Committee member is not present at a meeting of the Committee, the County’s Alternate Board member may serve as the county’s alternate on the Committee. In addition to GL2 member counties, each GL2 public entity member shall be a member of the Committee, subject to the GL2 member counties maintaining a minimum of 60% of the eligible voting membership on the Committee. The GL2 public entity committee members shall be reduced accordingly to ensure at least 60% of the Committee consists of GL2 member counties. For example, based upon the 8 current GL2 member counties participating in the Program, all 3 current GL2 public entity members would have a seat on the Committee and maintain at least 60% representation by the GL2 member counties. If the number of GL2 member counties is reduced to 4, then the GL2 public entity members would lose one seat and have only 2 votes. GL2 public entity committee members shall be appointed by the Executive Committee and shall serve for a two-year term. Each GL2 public entity committee member shall designate an alternate to vote in their absence. The alternate must be an employee or elected or appointed official of the GL2 public entity committee member.

General Liability 2 Program Amended: July 1, 2019
Memorandum of Understanding

Page 2 of 5 ends

C. The GL2 Committee shall meet on the call of the Chair of the Committee as provided in Article 12 of the Agreement and Article VI of the Bylaws of PRISM (hereinafter referred to as the "Bylaws").

D. A majority of the members of the GL2 Committee shall constitute a quorum for the transaction of business. Except as otherwise provided herein, all actions of the GL2 Committee shall require the affirmative vote of a majority of the members of the Committee. Any meeting of the GL2 Committee shall be subject to the applicable provisions of Government Code § 54950 et seq., commonly known as the “Brown Act.”

3. PREMIUMS. The participating members, in accordance with the provisions of Article 14 of the Agreement, shall be assessed an annual premium for the purpose of funding the GL2 Program. Annual premium contributions, including Program administrative costs plus PRISM’s general expense allocated to the Program by the Board for the next policy period, shall be as established by the GL2 Committee upon consultation with the underwriters.

4. MEMBER SELF-INSURED RETENTIONS. The self-insured retention amounts of the members shall be established upon consultation with the underwriters and subject to approval by the GL2 Committee.

5. COST ALLOCATION. The method of allocating contributions to the GL2 Program shall be determined by the GL2 Committee upon consultation with underwriters.

6. FUNDING FOR CLAIMS.

A. At the GL2 Committee’s discretion, based on market conditions, exposures, and/or loss history, self-insured layers or aggregated retentions may be established for the GL2 Program for any policy period or combination of policy periods. If selfinsured and/or aggregated retention layers are established, such will be funded by contributions from the members participating in the self-insured and/or aggregated retention layers, as determined by the Committee. Funding for these layers shall be used exclusively for the payment of claims made against the participating members, including expenses, in accordance with the terms and conditions of the applicable Memorandum of Coverage.

B. Any self-insured and/or aggregated retention layers shall be fully funded by the participating members, and may, at the discretion of the GL2 Committee, be discounted for anticipated and/or earned investment earnings. Should such not be fully funded for any reason, pro-rata assessments may be made to the participating members pursuant to the provisions of Article 14.b.3. of the Agreement to ensure a 100% funding level.

General Liability 2 Program Amended: July 1, 2019
Memorandum of Understanding

Page 3 of 5 ends

7. DIVIDENDS. Notwithstanding Article 22.b. of the Agreement, if self-insured and/or aggregated retention layers are established and it is determined that funds remain after the payment of all claims, a dividend may be declared by the GL2 Committee. If a dividend is declared, the dividend shall be payable to the members participating in the layer, during the period in which there are excess funds, based on each member’s share of contributions to the applicable layer, regardless of whether the member is a participating member in the GL2 Program at the time the dividend is declared.

8. MEMORANDUM OF COVERAGE. A Memorandum of Coverage will be issued by PRISM evidencing membership in the GL2 Program and setting forth terms and conditions of coverage.

9. CLAIMS ADMINISTRATION. Each participating member is required to comply with PRISM’s Underwriting and Claims Administration Standards (including Addendum B - Liability Claims Administration Guidelines) as amended from time-to-time, and which are attached hereto as Exhibit A and incorporated herein.

10. CLAIMS REVIEW COMMITTEE. There is hereby established a GL2 Claims Review Committee (hereinafter referred to as "CRC2”) and, except as otherwise provided herein, the CRC2 shall have full authority to determine all matters affecting the settlement of claims for participating members in excess of the members’ respective SIRs. The CRC2 shall also have full authority to conduct business on any other matters that have been delegated to it by the GL2 Committee. The CRC2 shall review all claims arising out of the GL2 Program against members, which involve or may involve liability of PRISM. The CRC2 may settle claims in excess of the members’ SIRs in accordance with Article XI of PRISM’s Bylaws. The CRC2 Committee shall advise the GL2 Committee as to the nature and extent of claims adjusting and legal defense services necessary to protect the funds of PRISM, as to settlement of claims above its monetary limits which involve liability of PRISM, and such other functions as the GL2 Committee may direct. The GL2 Committee may appoint legal counsel or use County Counsel representatives to serve in an advisory capacity to the CRC2.

A. The GL2 Committee shall appoint members to the CRC2. Terms of service on the CRC2 will be through December 31st of the year of expiration or until the GL2 Committee makes new appointments at its meeting the following year, whichever is later.
i. The CRC2 shall be comprised of 7 members who participate in the GL2 Program, of which 5 are voting members and 2 are alternates who are eligible to vote at any meeting where a voting member is absent. For the first year of the Committee, 3 of the voting members will serve 2 year terms and the other 2 voting members will serve 1 year terms. After the completion of the first year of the CRC2, the 2 expiring terms will become 2 year terms thereafter. Alternate members serve one-year terms.

General Liability 2 Program Amended: July 1, 2019
Memorandum of Understanding

Page 4 of 5 ends

B. The CRC2 shall meet at regularly scheduled times and places or upon the call of the Chair. Written notice of regular meetings shall be in accordance with the provisions of Article III.(1)(c) of the Bylaws. Special meetings shall be called and noticed in accordance with the provisions of Article III.(2).

A majority of the members of the CRC2 shall constitute a quorum for the transaction of business. All actions of the CRC2 shall require the affirmative votes of a majority of the members at a meeting duly held at which a quorum is present.

C. Should a member disagree with the denial of a request for settlement authority, the member may appeal the decision to the GL2 Committee for reconsideration. If the Committee agrees with the CRC2’s decision, then the member may appeal the decision to the Executive Committee pursuant to subsection (c) of Article 31 of the Agreement and thereafter follow the steps laid out in that subsection.

11. APPLICATION TO THE PROGRAM.

A. All applications to join the GL2 Program will be evaluated by and subject to approval by the GL2 Committee and the underwriter.

B. Any entity which makes application to become a participating member of the GL2 Program who is not already a participating member in PRISM must also be approved in accordance with the provisions of Article 19 of the Agreement.

C. New participating members may be added to the GL2 Program during the term of the coverage period on a pro-rata basis. Notwithstanding late entry into the Program, the new member may be assessed additional sums pursuant to paragraph 6 herein, based upon all claims against the fund during the entire coverage period.

12. WITHDRAWAL AND/OR CANCELLATION FROM THE PROGRAM. Withdrawal and/or cancellation of a member from the GL2 Program shall be in accordance with the provisions of Article 20 or 21 of the Agreement, except that any interest or other dividend to which the withdrawing member is otherwise entitled shall be payable to the withdrawing member in accordance with paragraph 7 herein.

13. LATE PAYMENTS. Notwithstanding any other provision to the contrary regarding late payment of invoices or cancellation from a program, at the discretion of the Executive Committee, any member that fails to pay an invoice when due may be given a ten (10) day written notice of cancellation.

General Liability 2 Program Amended: July 1, 2019
Memorandum of Understanding

Page 5 of 5 ends

5/30/19

14. RESOLUTION OF DISPUTES. Any question or dispute with respect to the rights and obligations of the parties to this Memorandum regarding coverage shall be determined in accordance with the Article 31 of the Agreement, and may also be subject to approval of the underwriter.

15. AMENDMENT. This Memorandum may be amended by a majority vote of the GL2 Committee and signature on the Memorandum by the member’s designated representative who shall have authority to execute this Memorandum. Should a member of the GL2 Program fail to execute any amendment to this Memorandum within the time provided by the GL2 Committee, the member will be deemed to have withdrawn as of the end of the policy period.

16. COMPLETE AGREEMENT. Except as otherwise provided herein, this Memorandum constitutes the full and complete agreement of the members.

17. SEVERABILITY. Should any provision of this Memorandum be judicially determined to be void or unenforceable, such determination shall not affect any remaining provision.

18. EFFECTIVE DATE. This Memorandum shall become effective on the effective date of coverage for the member and upon approval by the GL2 Committee of any amendment, whichever is later.

19. EXECUTION IN COUNTERPARTS. This Memorandum may be executed in several counterparts, each of which shall be an original, all of which shall constitute but one and the same instrument.

In witness whereof, the undersigned have executed this Memorandum as of the date set forth below.

Dated:

Public Risk Innovation, Solutions, and Management
Dated: ____________ ___________________________________________ Name, Position: ______________________________
Member Entity: _______________________________
Adopted: December 6, 1985
Last Amended: July 1, 2019

PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT (PRISM)

UNDERWRITING AND CLAIMS ADMINISTRATION STANDARDS
I. GENERAL
A. Each Member shall appoint an official or employee of the Member to be responsible for the risk management function and to serve as a liaison between the Member and PRISM for all matters relating to risk management.

B. Each Member shall maintain a loss prevention program and shall consider and act upon all recommendations of PRISM concerning the reduction of unsafe conditions.

II. EXCESS WORKERS' COMPENSATION PROGRAM
A. Members of the Excess Workers’ Compensation Program, except those members of the Primary Workers’ Compensation Program whose responsibilities are outlined in Section IV below, shall be responsible for the investigation, settlement, defense and appeal of any claim made, suit brought or proceeding instituted against the Member.

1. The Member shall use only qualified personnel to administer its workers' compensation claims. At least one person in the claims office (whether in-house or outside administrator) shall be certified by the State of California as a qualified administrator of self-insured workers' compensation plans.

2. Qualified defense counsel experienced in workers’
compensation law and practice shall handle litigated claims.

Members are encouraged to utilize attorneys who have the designation “Certified Workers’ Compensation Specialist, the State Bar of California, Board of Legal Specialization”.

3. The Member shall use PRISM's Workers' Compensation Claims Administration Standards (Addendum A) and shall advise its claims administrator that these standards are utilized in PRISM's workers' compensation claims audits.

B. The Member shall provide PRISM written notice of any potential excess workers' compensation claims in accordance with the requirements of PRISM's Bylaws. Updates on such claims shall be provided pursuant to the reporting provisions of PRISM’s Workers’

EXHIBIT A
Compensation Claims Administration Standards (Addendum A) or as requested by PRISM and/or PRISM's excess carrier.

C. A claims administration audit utilizing PRISM's Workers' Compensation Claims Administration Standards (Addendum A) shall be performed once every two (2) years. In addition, an audit will be performed within twelve (12) months of any of the followingevents:

1. There is an unusual fluctuation in the Member's claim experience or number of large claims, or

2. There is a change of workers' compensation claims administration firms, or

3. The Member is a new member of the Excess Workers’ Compensation Program.

The claims audit shall be performed by a firm selected by PRISM unless an exception is approved. Recommendations made in the claims audit shall be addressed by the Member and a written response outlining a program for corrective action shall be provided to PRISM within sixty (60) days of receipt of the audit.

D. Each Member shall maintain records of claims in each category of coverage (i.e. indemnity, medical, expense) or as defined by PRISM and shall provide such records to PRISM as directed by the Board of Directors, Claims Review Committee, Underwriting Committee, or Executive Committee. Such records shall include both open and closed claims, allocated expenses, and shall not be capped by the Member’s self-insured retention.

E. The Member shall obtain an actuarial study performed by a Fellow of the Casualty Actuarial Society (FCAS) at least once every three (3) years. Based upon the actuarial recommendations, the Member should maintain reserves and make funding contributions equal to or exceeding the present value of expected losses and a reasonable margin for contingencies.

III. GENERAL LIABILITY PROGRAMS
A. Members of the General Liability 1 or General Liability 2 Programs, except those members of the Deductible Buy-Down Program whose responsibilities are outlined in Section V below, shall be responsible for the investigation, settlement, defense and appeal of any claim made, suit brought or proceeding instituted against the Member.

1. The Member shall use only qualified personnel to administer its liability claims.

2. Qualified defense counsel experienced in tort liability law shall handle litigated claims. Members are encouraged to utilize defense counsel experienced in the subject at issue in thelitigation.

3. The Member shall use the Liability Claims Administration Standards (Addendum B) and shall advise its claims administrator that these standards are utilized in PRISM's liability claims audits.

B. The Member shall provide PRISM written notice of any potential excess liability claim in accordance with the requirements of PRISM's Bylaws.

Updates on such claims shall be provided pursuant to the reporting provisions of PRISM’s Liability Claims Administration Standards (Addendum B) or as requested by PRISM and/or PRISM's excess carrier.

C. A claims administration audit utilizing PRISM's Liability Claims Administration Standards (Addendum B) shall be performed once every two (2) years. In addition, an audit will be performed within twelve (12) months of any of the followingevents:

1. There is an unusual fluctuation in the Member's claims experience or number of large claims, or

2. There is a change of liability claims administration firms, or

3. The Member is a new member of the General Liability 1 or General Liability 2 Program.

D. Each Member shall maintain records of claims in each category of coverage (i.e. bodily injury, property damage, expense) or as defined by PRISM and shall provide such records to PRISM as directed by the Board of Directors or applicable committee. Such records shall include open and closed claims, allocated expenses, and shall not be capped by the Member’s self-insured retention.

IV. PRIMARY WORKERS’ COMPENSATION PROGRAM
A. Members of the Primary Workers’ Compensation Program shall provide the third party administrator written notice of any claim in accordance with the requirements of PRISM. Members must also cooperate with the third party administrator in providing all necessary information in order for claims to be administered appropriately.

B. PRISM shall be responsible for ensuring qualified personnel administer claims in the Primary Workers’ Compensation Program and that claims are administered in accordance with PRISM’s Workers’ Compensation Claims Administration Standards (Addendum A).

C. PRISM shall be responsible for ensuring a claims administration audit utilizing PRISM’s Workers’ Compensation Claims Administration Standards (Addendum A) is performed once every two (2) years.

D. PRISM shall be responsible for obtaining an actuarial study performed by a Fellow of the Casualty Actuarial Society (FCAS)annually.

V. DEDUCTIBLE BUY-DOWN PROGRAM
A. Members of the Deductible Buy-Down Program shall provide the third party administrator written notice of any claim or incident in accordance with the requirements of PRISM. Members must also cooperate with the third party administrator in providing all necessary information in order for claims to be administeredappropriately.

B. PRISM shall be responsible for ensuring qualified personnel administer claims in the Deductible Buy-Down Program and that claims are administered in accordance with PRISM’s Liability Claims Administration Standards (Addendum B).

C. PRISM shall be responsible for ensuring a claims administration audit utilizing PRISM’s Liability Claims Administration Standards (Addendum B) is performed once every two (2) years.

D. The Authority shall be responsible for obtaining an actuarial study performed by a Fellow of the Casualty Actuarial Society (FCAS)annually.

VI. PROPERTY PROGRAM
A. Members of the Property Program shall maintain appropriate records including a complete list of insured locations and schedule of values pertaining to all real property. Such records shall be provided to PRISM or its brokers as requested by the Executive or Property Committees.

B. Each Member shall perform a real property replacement valuation for all locations over $250,000. Valuations shall be equivalent to the Marshall Swift system and shall be performed at least once every five (5) years for all locations over $1,000,000 and at least once every ten (10) years for all locations with a valuation between $250,000 and $1,000,000. New members shall have an appraisal or valuation performed within one year from entry into the Program.

VII. MEDICAL MALPRACTICE PROGRAM
A. Program I

1. Members of Medical Malpractice Program I (hereinafter Program I) shall be responsible for the investigation, settlement, defense and appeal of any claim made, suit brought or proceeding instituted against the Member.
a. Members of Program I shall use only qualified personnel to administer its health facility claims.
b. Qualified defense counsel experienced in health facility law shall handle litigated claims.
c. Members of Program I shall use the "Claims Reporting and Handling Guidelines" in the PRISM Medical Malpractice
Program Operating and Guidelines Manual (hereinafter
Operating and Guidelines Manual), and shall advise its claims administrator that these claims handling guidelines are utilized in PRISM's medical malpractice claims audits.

2. Members of Program I shall provide PRISM written notice of any potential excess claim or "major incident" in accordance with the requirements of PRISM and of the excess carrier as stated in the Operating and Guidelines Manual. Updates on such claims or major incidents shall be provided as requested by PRISM.

3. A claims administration audit utilizing PRISM's Claims Reporting and Handling Guidelines in the Operating and Guidelines Manual shall be performed once every three (3) years. In addition, an audit will be performed within twelve (12) months of any of the following events:
a. There is an unusual fluctuation in the Member's claims experience or number of large claims, or
b. There is a change of health facility claims administration firms, or
c. The Member is a new member of the Medical Malpractice Program, or
d. The Medical Malpractice Committee requests an audit. The claims audit shall be performed by a firm(s) selected by PRISM.

Recommendations made in the claims audit shall be addressed by the Member and a written response outlining a program for corrective action shall be provided to PRISM within sixty (60) days of receipt of the audit.

4. Each Member shall maintain records of claims in each category of coverage (i.e. bodily injury, property damage, expense) or as defined by PRISM and shall provide such records to PRISM as directed by the Board of Directors or applicable committee. Such records shall include open and closed claims, allocated expenses, and shall not be capped by theMember’s self-insured retention.

5. Members of Program I shall obtain an actuarial study performed by a Fellow of the Casualty Actuarial Society (FCAS) at least once every three (3) years. Based upon the actuarial recommendations, the Member should maintain reserves and make funding contributions equal to or exceeding the present value of expected losses and a reasonable margin for contingencies.

6. The Member shall have an effective risk management program in accordance with the "Risk Management Guidelines" as stated in the Operating and Guidelines Manual.

B. Program II

1. For Medical Malpractice Program II (hereinafter Program II) Members, PRISM shall be responsible for the investigation, settlement, defense and appeal of any claim made, suit brought or proceeding instituted against the Member. PRISM may contract with a third party administrator for handling of such claims.

2. PRISM shall be responsible for ensuring the third party administrator uses qualified personnel to administer Program II claims.

3. PRISM shall be responsible for ensuring qualified defense counsel experienced in health facility law shall handle litigated claims.

4. PRISM shall be responsible for ensuring a claims administration audit utilizing PRISM's Claims Reporting and Handing Guidelines in the Operating and Guidelines Manual shall be performed once every two (2) years.

The claims audit shall be performed by a firm(s) selected by PRISM.

Recommendations made in the claims audit shall be addressed by the third party administrator and a written response outlining a program for corrective action shall be provided to PRISM within sixty (60) days of receipt of the audit.

5. PRISM shall be responsible for obtaining an actuarial study performed by a Fellow of the Casualty Actuarial Society (FCAS) annually.

6. The Member shall have an effective risk management program in accordance with the "Risk Management Guidelines" as stated in the Operating and Guidelines Manual.

VIII. SANCTIONS
A. PRISM shall provide the Member written notification of the Member's failure to meet any of the above-mentioned standards or of other concerns, which affect or could affect PRISM.

B. The Member shall provide a written response outlining a program for corrective action within sixty (60) days of receipt of PRISM's notification.

C. After approval by the Executive or applicable Program Committee of the Member's corrective program, the Member shall implement the approved program within ninety (90) days. The Member may request an additional sixty (60) days from the Executive or applicable Program Committee. Further requests for extensions shall be referred to the Board ofDirectors.

D. Failure to comply with subsections B or C may result in cancellation of the Member from the affected PRISM Program in accordance with the provisions in the Joint Powers Agreement.

E. Notwithstanding any other provision herein, any Member may be canceled pursuant to the provision of the Joint PowersAgreement.

Addendum B: Liability
Claims Administration Guidelines

Page 1 of 8 ends

ADDENDUM TO EXHIBIT A Adopted: December 6, 1985
Last Amended: July 1, 2019

ADDENDUM B

LIABILITY CLAIMS ADMINISTRATION STANDARDS
The following Standards have been adopted by Public Risk Innovation, Solutions, and Management (hereinafter PRISM) in accordance with Article 18(b) of the PRISM Joint Powers Agreement. It is the intent that these standards shall be followed by the Member and/or third party administrator.

I. CLAIMS INVESTIGATION
A. Complete initial investigation answering questions such as who, what, where, when and why. Investigations shall be completed within forty-five (45) days of the Member’s knowledge of claim, including statements from participants and witnesses, appropriate official reports, investigative reports, site inspections, relevant documents and photos/videos.

B. Identify liability issues, including immunities, comparative negligence, joint tortfeasors and joint and several liability.

C. Initiate the development of information on damages including, but not limited to:

1. Property damage

2. Nature and extent of injuries

3. Medical costs (billed and paid)

4. Lost wages (past and future)

5. Other economic damages

6. Non-economic damages
D. Obtain and review relevant contracts and insurance documents, to determine whether there is any sharing or complete transfer of the risk.

1. Hold-harmless and/or indemnity agreements

2. Additional insured requirements
E. Ensure proper preservation of evidence.

F. Evaluate the need to utilize experts.

G. Indexing.

Addendum B: Liability
Claims Administration Guidelines

Page 2 of 8 ends

1. All bodily injury claims shall be initially reported to the Index Bureau and re-indexed on an as needed basisthereafter.

PRISM maintains a membership with the Index Bureau that members can access.

H. Secure estimates or appraisals for damaged property.

I. All notices (pertaining to claim insufficiency, returning late claims, claims rejections, etc.) shall be done in accordance with the relevant Governmental Code provisions.

II. PRISM REPORTING REQUIREMENTS
A. First Report
The Member shall give PRISM immediate written notice for any claims or suits which the Member becomes aware of that include injury of the following types:
a. Death
b. Paralysis, paraplegia, quadriplegia
c. Loss of eye(s), or limbs
d. Spinal cord or brain injury
e. Dismemberment or amputation
f. Sensory organ or nerve injury or neurologicaldeficit g. Serious burns
h. Severe scarring
i. Sexual assault or battery including but not limited to rape, molestation or sexual abuse
j. Substantial disability ordisfigurement
k. Any class action
l. Any claim or suit in which PRISM is named as a defendant; or m. Any injury caused by lead.

Additionally, the covered party must report to PRISM an occurrence, offense, or wrongful act as follows:

As respect to the General Liability 1 Program members, this includes any occurrence, offense, or wrongful act in which the amount incurred has reached fifty (50) percent or more of their individual self- insured retention or $500,000, whichever is lower.

As respect to the General Liability 2 Program members, this includes any occurrence, offense, or wrongful act in which the amount incurred Addendum B: Liability
Claims Administration Guidelines

Page 3 of 8 ends

has reached fifty (50) percent of their individual self-insured retention.

These reporting requirements are intended to be consistent with the requirements in the current year Memorandum of Coverage (MOC).

Reporting requirements specific to a loss outside the current MOC year should be verified through the MOC effective for that loss year.

Utilize the current First Report Potential Excess Liability Claims form, available through PRISM’s website, and transmit to PRISM by email to [email protected].

First report forms shall, at a minimum, include the following:
• Entity name
• Entity’s claim number
• Defense counsel’s name and firm name
• Lead Claimant’s first and last name
• Specific date of loss
• Brief description of the incident
• Established reserves for indemnity, litigation, and expense B. Status Reports
After the First Report to PRISM, status reports, whether provided by the Member, third party administrator or defense counsel, shall be provided at a minimum of every ninety (90) days (more frequently if warranted). Status reports shall focus on changes in liability analysis, damages, and reserves.

C. Photos, diagrams, estimates, statements, contracts, medical, law enforcement and coroner's reports (where applicable), claim forms, lawsuits (including amended complaints), motions for summary judgment, demurrers, dismissals, appellate briefs and orders/rulings/judgments shall be in the claims file, and provided to PRISM, within ninety (90) days of receipt of the material.

D. Closure Reports
When a claim or suit that has been reported to PRISM is settled, dismissed or closed in any other fashion, PRISM shall be provided with the closing documents and an accounting of the final paid amounts on the exposure for indemnity, litigation, and expense within 90 days from the day the final defense bill is paid.

III. MEDICARE REPORTING
A. Proper verification of a claimant’s status as to Medicare eligibility shall be Addendum B: Liability
Claims Administration Guidelines

Page 4 of 8 ends

completed and documented in every file involving a bodily injury. In those cases where the claimant does meet the eligibility requirements, mandatory reporting to the Center for Medicare and Medicaid Services (CMS) must be completed directly or through a reporting agent in compliance with State Children’s Health Insurance Program (SCHIP) Section 111 of the Medicare Medicaid and SCHIP Extension Act of 2007.

IV. RESERVING
Each claim should be reviewed and evaluated according to the merits of the claim and based upon the most current and reliable information received, starting with the initial report of claim and continuing through final resolution. Delays result in understated reserves and, possibly, missed opportunities to settle.

A. An accurate and appropriate initial indemnity reserve shall be established on all reportable claims based on facts known, upon completion of the initial investigative report or when suit is filed, whichever occurs first. In addition, separate legal and adjusting reserves shall be established.

Indemnity reserves shall reflect the most probable outcome plus exposure to plaintiff attorney’s fees and costs.

Most probable outcome is the potential total amount a plaintiff could expect to receive, either through settlement or verdict, after factoring in the Member’s percentage of liability. (This approach is neither the best or worst case outcome).

Factors to consider for when evaluating the potential total settlement or verdict a plaintiff could expect to receive include but are not limited to:
• Extent of injuries and/or damages
• Medical expenses
• Loss of income
• Any other related expenses
• Future anticipated expenses
• Total of both gross and out-of-pocket expenses
• Permanent injury
• Disfigurement/scarring
• Pain and suffering
• Any other intangible factors which may result in a higher or lower claim value such as jurisdiction, credibility of parties/witnesses, etc.

Percentage of liability is determined by various factors that are discovered during an investigation. Reserves shall be adjusted accordingly, as facts are developed, to properly reflect the exposure. These factors include but are not limited to:

Addendum B: Liability
Claims Administration Guidelines

Page 5 of 8 ends

a. Facts of loss
b. Applicable laws
c. Defense Counsel evaluations
d. Jury Verdict evaluation
e. The extent of plaintiff's liability (comparative negligence) f. The number of co-defendants and their percentage of liability g. The ability of the co-defendants to respond financially to any settlement or verdict.
h. On cases occurring after June 3, 1986, Proposition 51 allows defendants to limit their liability on non-economic damages to their percentage of fault.
i. On cases involving uninsured motorist claimants the recovery is limited to economic damages in accordance with California Code of Civil Procedures sections 3333.3 and 3333.4 (Prop 213).
j. Any other mitigating factors

2. Reserves shall be set at the most probable outcome even if it exceeds the Member’s Self-InsuredRetention. In all litigated Excess reportable cases, the Member shall set a meaningful indemnity reserve.

3. Reserves shall be evaluated for adequacy at least every ninety (90) days.

All reserve changes shall be documented in a paper or electronic file providing explanation of the reason for the reserve change or notation that the current reserve is adequate and why. PRISM shall be notified of all reserve changes within thirty (30) days of the change being made.

V. DOCUMENTATION
A. Each file shall contain information necessary to document the decisions made, including all demands, offers of settlement and settlement authority.

For those cases in which the (1) Bodily Injury claims reserved above twentyfive (25) percent of the S.I.R., (2) Property Damage claims reserved above twenty-five (25) percent of the S.I.R., and (3) All claims that meet PRISM’s excess reporting requirements regardless of reserves, the following information shall be contained in each file:

1. Claimant(s) Information

2. Date of Loss

3. Claim Number

4. Facts of accident or occurrence

5. Witness/Participant Statement

6. Reserve rationale

7. Assessment of liability

8. Damages/injuries, including medical costs, lost wages, dependency, Addendum B: Liability
Claims Administration Guidelines

Page 6 of 8 ends

property damage estimates, total loss evaluations, loss of use claims, and otherdamages

9. Index Bureau reporting

10. Coverage questions

11. Excess potential

12. Structured Settlement possibilities (where applicable)

13. Alternative Dispute Resolution

14. Subrogation potential (where applicable)
12 Governmental Code compliance and immunities

13. Future course of action

14. Next diary date

15. If litigated, identify counsel on both sides

16. Offsets or liens that may need to be considered

17. Medicare eligibility and reporting

18. Risk and insurance transfer
VI. CASE SETTLEMENT FACTORS
A. Settlement evaluation and authority by the Member shall be documented. On cases exceeding the S.I.R., prior written settlement authority must be obtained from PRISM.

B. The settlement shall be reasonable in light of damages, injuries, liability, and any obligations to Medicare.

C. Settlements shall be effected in a timely manner, with consideration given to structures, statutory offers (Rule 68 or 998) where applicable, and/or alternative dispute resolution.

D. Contributions from joint tortfeasors shall be considered.

E. Proper releases and dismissals shall be secured and copies provided to PRISM.

VII. LITIGATED FILES
A. Defense litigation plan shall be in the file.

B. Defense attorney’s initial evaluation and budget shall be completed and in the file within sixty (60) days of assignment. If the billed amount of attorney’s fees and costs exceeds seventy-five (75) percent of the total budget, then the defense attorney shall provide an updated budget.

C. On litigated cases, defense counsel shall also include PRISM on their mailing lists for copies of correspondence, reports, evaluations, interrogatory summaries, deposition summaries and medical summaries. Actual Addendum B: Liability
Claims Administration Guidelines

Page 7 of 8 ends

deposition transcripts, interrogatories, their answers to interrogatories and interim billings are not required.

Updated reports shall provide a summary of pertinent information based on the status of a case. Pertinent information includes, but is not limited to:
• Identified experts – what their analysis has concluded, their credibility as a witness (both plaintiff and defense), and how their testimony will/will not influence the case potential.
• Witness deposition summaries including an evaluation of their credibility as a witness and how their testimony will/will not influence the case potential.
• A summary of relevant documents disclosed or obtained through discovery and an analysis of their impact on the case.
• A summary of applicable case law and immunities.
• Updated evaluation of damages including, but not limited to, billed and paid medical bills, estimated future medical expenses, past and future wage loss estimates, and general damage estimates.
• Analysis of liability and potential settlement/verdict value as well as suggested next steps (MSJ, Demurrer, Mediation, etc.).

D. The defense attorney shall make proper follow-up requests for investigation.

E. There shall be timely recommendations from defense firms regarding expert retention, settlements, and trial preparation.

F. Defense costs shall be controlled by the Member. Depositions, retention of experts, expert costs, and other defense costs shall be approved by the Member.

G. Litigation outcome and total costs shall be documented.

H. There shall be timely notification to relevant employees and other parties regarding pending litigation.

No less than forty-five (45) days prior to trial, counsel shall provide a pre-trial report that discusses the following:

1. Case Summary
• Plaintiff and any individual Defendants including counsel’s opinion as to how each will be viewed by a jury
Addendum B: Liability
Claims Administration Guidelines

Page 8 of 8 ends

• List of claims
• Summary of Facts
• Expected percipient witness testimony
• Expected Liability ExpertTestimony
• Critical Liability Issues
• Summary of Special and General Damages including
expected damage expert testimony
• Summary of Punitive Damages and non-monetary relief
requested (if applicable)
• Attorneys’ fees and costs estimate for claims that involve the potential award of attorneys’ fees

2. Evaluation
• Potential Verdict Value
• Comparative Fault Analysis
• Settlement Discussion summary
• Probability of Defense Verdict
Throughout trial, a daily trial status update shall be provided to PRISM by defense counsel, the Member, or the Third-Party Administrator. This can be informal, such as an email or voicemail advising of the day’s activities, impressions of witnesses, any impacting developments, and an update regarding the next day’s schedule.

I. Appropriate Dismissal Motions shall be made for failure to meet the applicable Code of Civil Procedure statutes for timely serving, conducting discovery or bringing a complaint to trial.

VIII. SUMMARY
The file shall be completely documented.

Audits conducted by the PRISM Auditor shall measure whether performance is consistent with these standards.

Following is the history of amendments to this document:

Adopted: December 6, 1985
Amended: January 23, 1987
Amended: October 6, 1995
Amended: October 1, 1999
Amended: March 2, 2007
Amended: March 5, 2010
Amended: March 2, 2012
Amended: June 1, 2012
Amended: July 1, 2019
Adopted: March 5, 1993
Amended: October 4, 1996
Amended: October 6, 2006
Amended: March 6, 2009

Page 1 of 4 ends

MEMORANDUM OF UNDERSTANDING

EXCESS WORKERS' COMPENSATION PROGRAM
This Memorandum of Understanding is entered into by and between Public Risk Innovation, Solutions, and Management (hereinafter referred to as "PRISM") and the participating members who are signatories to this Memorandum.

1. Joint Powers Agreement. Except as otherwise provided herein, all terms used herein shall be as defined in Article 1 of the Joint Powers Agreement Creating PRISM (hereinafter referred to as "Agreement"), and all other provisions of the Agreement not in conflict with this Memorandum shall be applicable.

2. Annual Premium. The participating members, in accordance with the provisions of Article 14(b)(2) of the Agreement, shall be assessed an annual premium for the purpose of funding the Excess Workers' Compensation Program (hereinafter referred to as the "Program"). Annual premiums shall include expected losses for the policy period, including Incurred But Not Reported losses (IBNR), as well as a margin for contingencies based upon a confidence level as determined by the Board of Directors of PRISM (hereinafter Board), and adjustments, if any, for a surplus or deficit from all program policy periods. In addition, the premium shall include program reinsurance costs and program administrative costs, plus PRISM's general expense allocated to the Program by the Board for the next policy period.

3. Cost Allocation. Each participating member’s share of annual premium shall be determined pursuant to a cost allocation plan as described in Article 14(b)(2) of the Agreement. The Board approved cost allocation plan is attached hereto as Exhibit A and may be amended from time to time by an affirmative vote of the majority of the Board representing the members participating in the Program.

4. Dividends and Assessments. The Program shall be funded in accordance with paragraph 2 above. In general, the annual premium, as determined by the Board, will be established at a level which will provide adequate overall funding without the need for adjustments to past policy period(s) in the form of dividends and assessments. However, should the Program for any reason not be adequately funded, except as otherwise provided herein, pro-rata assessments to the participating members may be utilized to ensure the approved funding level for those policy periods individually or for a block of policy periods, in accordance with the provisions of Article 14(b)(3) of the Agreement.

PRISM Amended: March 6, 2009
Excess Workers’ Compensation Program MOU

Page 2 of 4 ends

Pro-rata dividends will be declared as provided herein. Dividends may also be declared as deemed appropriate by the Board.

5. Closure of Policy Periods. Notwithstanding any other provision of this Memorandum, the following provisions are applicable:
(a) Upon reaching ten (10) years of maturity after the end of a program period, that period shall be "closed" and there shall be no further dividends declared or assessments made with respect to those program periods except as set forth in paragraph 6(a), below;
(b) Notwithstanding sub-paragraph (a) above, the Board may take action to leave a policy period "open" even though it may otherwise qualify for closure. In addition, the last ten (10) policy periods shall always remain "open" unless the Board takes specific action to declare any of the last ten (10) policy periods closed.
(c) Dividends and assessments (other than as outlined in paragraph 6(a), below) shall be administered to the participating members based upon the proportion of premiums paid to the Program in "open" periods only. For purposes of administering dividends and assessments pursuant to this subparagraph, all "open" policy periods shall be considered as one block. New members to the Program shall become eligible for dividends and assessments upon participating in the Program for three (3) consecutive policy periods (not less than 24 months). Participating members who withdraw from the Program prior to the three-year policy period restriction are still eligible for any assessments that arose out of the policy years they participated in the Program.

6. Declaration of Dividends. Dividends shall be payable from the Program to a participating member in accordance with its proportionate funding to the Program during all “open” policy periods except as follows:
(a) A dividend shall be declared at the time a program period is closed on all amounts which represent premium surcharge amounts assessed pursuant to Article 14(b)(3) of the Agreement where the funding exceeds the 80% confidence level. This dividend shall be distributed based upon each member’s proportionate share of assessment paid and accrued to the policy period being closed.

PRISM Amended: March 6, 2009
Excess Workers’ Compensation Program MOU

Page 3 of 4 ends

7. Memorandum of Coverage. A Memorandum of Coverage will be issued by PRISM evidencing membership in the Program and setting forth terms and conditions of coverage.

8. Claims Administration. Each participating member is required to comply with PRISM’s Underwriting and Claims Administration Standards (including Addendum A - W.C. Claims Administration Guidelines) as amended from time-to-time, and which are attached hereto as Exhibit B and incorporated herein.

9. Late Payments. Notwithstanding any other provision to the contrary regarding late payment of invoices or cancellation from a Program, at the discretion of the Executive Committee, any member that fails to pay an invoice when due may be given a ten (10) day written notice of cancellation.

10. Disputes. Any question or dispute with respect to the rights and obligations of the parties to this Memorandum regarding coverage shall be determined in accordance with the Joint Powers Agreement Article 31, Dispute Resolution.

11. Amendment. This Memorandum may be amended by two-thirds of PRISM’s Board of Directors and signature on the Memorandum by the member’s designated representative who shall have authority to execute this Memorandum. Should a member of the Program fail to execute any amendment to this Memorandum within the time provided by the Board, the member will be deemed to have withdrawn as of the end of the policy period.

12. Complete Agreement. Except as otherwise provided herein, this Memorandum constitutes the full and complete agreement of the members.

13. Severability. Should any provision of this Memorandum be judicially determined to be void or unenforceable, such determination shall not affect any remaining provision.

14. Effective Date. This Memorandum shall become effective on the effective date of coverage for the member and upon approval by the Board of any amendment, whichever is later.

15. Execution in Counterparts. This Memorandum may be executed in several counterparts, each of which shall be an original, all of which shall constitute but one and the same instrument.

PRISM Amended: March 6, 2009
Excess Workers’ Compensation Program MOU

Page 4 of 4 ends

IN WITNESS WHEREOF, the undersigned have executed this Memorandum as of the date set forth below.

Dated: ________________ ______________________________________ Public Risk Innovation, Solutions, and Management
Dated: ________________ ______________________________________ Member Entity: _________________________
3/6/2009
Last Amended: 3/7/2003

EXHIBIT A
EXCESS WORKERS’ COMPENSATION PROGRAM

COST ALLOCATION PLAN
As delegated by the Board of Directors, the Executive Committee will determine the specific allocation of all costs among the members subject to the following parameters:

Actuarial Analysis
An annual actuarial analysis will be performed using loss data and payroll collected from the members. The analysis will determine the necessary funding rates at various confidence levels and using various discount assumptions.

Different rates may be developed for different groups or classes of business as is deemed necessary or appropriate by the Executive Committee. At the March Board meeting, the Board of Directors will select the funding level rates and discount factors to be used based upon the actuarial analysis and recommendations from the Actuary, the Underwriting Committee and the Executive Committee.

Pool Contributions
The total needed deposit pool contribution will be determined by multiplying the rates described above by the payroll for all of the members participating in the pool. Estimated payroll for the year being funded will be used. The Executive Committee may break the pool into different layers for allocation purposes, and may apply a different loss experience modification for each layer as is deemed appropriate based on loss frequency. In general, the lower layers will be subject to greater experience modification and the higher layers will be subject to lower experience modification or no experience modification. Within the layers, the larger members will be subject to greater experience modification than the smaller members. After the experience modification has been applied for each layer, there will be a pro-rata adjustment back to the total needed deposit pool contribution. This amount will be collected from the members at the beginning of the policy period. The actual payroll for the period will be determined after the completion of the policy period and an adjustment to each member’s pool contribution will be made to account for the difference between the estimated and actual payroll. Additional contributions will be collected or return contributions will be refunded as appropriate.

Reinsurance Premiums
The reinsurance premium will be determined through negotiations with the reinsurer(s) and approved by the Board upon recommendation of the Underwriting and Executive Committees. This premium will then be allocated among the members based upon their estimated payroll. Adjustments will be EWC Program MOU
Exhibit A

Page 2 of 2 ends

made based on the actual payroll upon completion of the policy period in the same manner as described in the Pool Contribution section above.

PRISM Administration Fees
The total PRISM Administration Fees will be determined through the annual budgeting process with an appropriate amount allocated to the Excess Workers’ Compensation Program. These fees will be allocated among the members as determined by the Executive Committee. In general, the basis for this allocation will be each member’s percentage of the total pool contributions and reinsurance premium.

Deviation From the Standard
The Executive Committee may establish policies to deviate from the standard allocation methodology selected for each year on a case-by-case basis, if necessary. They may also elect to further delegate some or all of the decisionmaking authority described herein to the Underwriting Committee.

Adopted: December 6, 1985
Last Amended: July 1, 2019

PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT (PRISM)

B. Each Member shall maintain a loss prevention program and shall consider and act upon all recommendations of PRISM concerning the reduction of unsafe conditions.

2. Qualified defense counsel experienced in workers’
compensation law and practice shall handle litigated claims.

Members are encouraged to utilize attorneys who have the designation “Certified Workers’ Compensation Specialist, the State Bar of California, Board of Legal Specialization”.

EXHIBIT B
Compensation Claims Administration Standards (Addendum A) or as requested by PRISM and/or PRISM's excess carrier.